Minister Dato Sri Dr Stephen Rundi Utom said this is in line with the state government’s aspiration to transform and modernise agriculture in Sarawak into a high-income and sustainable sector.

“To date, this sector has contributed 10.54 per cent with a value of RM14.6 billion to Sarawak’s gross domestic product (GDP) last year.

“A large contributor to growth in the agriculture sector is the improved production of crude palm oil from 3.9 million tonnes in 2001 to 4.0 million tonnes in 2022,” he stated in his address at the closing ceremony of Palm Oil Milling Technology Exhibition & Conference (POMtec) 2023 at Pullman Waterfront Miri today.

Dr Rundi’s text of speech was read by his deputy Martin Ben.

On oil palm exports, Dr Rundi said that as of June this year, a total of 11.45 million tonnes of oil palm products have been exported abroad with an export value of RM45.55 billion.

Compared to the same period in 2022, he added, the figures decreased by 0.14 per cent and 33 per cent, respectively.

He further said Sarawak’s export of palm oil products had also recorded a fall in the first half of this year compared to the same period in 2022, pointing out that the export volume has shrunk 6.6 per cent from 2.12 million tonnes to 1.98 million tonnes while the export value has declined 36.4 per cent from RM10.58 billion to RM6.73 billion.

He admitted that the European Deforestation-free Regulation (EUDR) policy introduced by the European Union (EU) will limit the use of agro-commodity products worldwide, and would also negatively impact the country’s commodity production.

“The government is implementing various strategies to promote sustainable agro-commodity production and promoting Malaysian Sustainable Palm Oil (MSPO) certification throughout the country.

“MSPO covers all stages of the production chain in the sector.”

Out of 45,652 smallholders in Sarawak, he said 35,876 thus far have been given MSPO certification, covering 198,325.37 hectares of planted area, in addition to 710 estates and 77 mills in the state which have received the certification.

“The MSPO standards have been undergoing a multi-stakeholder review process since 2019 until today.

“The revised MSPO Standards (MS2530:2022), which were announced in March 2022, have improved and strengthened environmental, social and economic requirements which are in line with global sustainability norms and requirements such as the United Nations Sustainable Development Goals (UN SDGs).”

He urged all the industry players along the supply chain to comply with MSPO standards which embody international best practices, thus making the state’s oil palm products competitive and acceptable in the global market.

Also present was POMtec 2023 organising chairman Tian Foon Howe.