Lee beating the gong to officiate Doppa’s 11th Annual Dinner, witnessed by Penguang (third right), Napolean (fourth right) and other guests.

MIRI (Sept 27): Oil palm smallholders in Sarawak must diversify their crops and agricultural produce to remain resilient and competitive amid increasingly challenging global market conditions.

Food Industry, Commodity and Regional Development Minister Dato Sri Dr Stephen Rundi Utom said changes in global oil palm sustainability requirements, coupled with evolving demands from international buyers and traders, required smallholders to take proactive steps to strengthen their income sources.

According to Rundi, crop diversification would not only help smallholders address challenges in the global market but also provide more stable and competitive income.

“The oil palm industry, with its comprehensive supply chain system, is highly exposed to competition from global producers of vegetable oils such as soybean, corn, canola and rapeseed,” he said in his officiating speech at the 11th Annual Dinner of the Dayak Oil Palm Planters Association of Sarawak (Doppa) held here on Saturday.

His speech text was read by the Transport Minister Dato Sri Lee Kim Shin, who represented him at the dinner.

Dr Rundi noted that Sarawak’s oil palm industry remained an important contributor to the state’s economy, with about 1.67 million hectares under oil palm cultivation.

Of this, 292,392 hectares were owned by 56,677 independent smallholders.

Dr Rundi said the industry had contributed about RM801 million to Sarawak’s revenue through the state sales tax on crude palm oil (CPO), palm kernel and palm kernel oil.

“This makes the oil palm industry the second-largest contributor to state revenue after petroleum products,” he said.

He added that in 2025, an estimated RM18.70 billion in exports from Sarawak came from oil palm products.

Smallholders also made a significant contribution, accounting for an estimated 15 per cent of the overall revenue generated by the state’s oil palm industry.

Dr Rundi said the achievements reflected the importance of the oil palm sector, which over the past two decades had helped increase the income and socioeconomic status of rural communities, particularly through small-scale oil palm cultivation.

On Doppa, he said its annual dinner demonstrated the association’s success in empowering and uniting Dayak smallholders in Sarawak under one umbrella.

He said the attendance of about 600 smallholders from across Sarawak reflected their commitment, support and solidarity towards Doppa’s activities.

He described Doppa as an important platform representing the interests of Dayak smallholders in Sarawak.

Dr Rundi urged smallholders to continue working hard to strengthen the industry and contribute to the continued development and progress of Sarawak.

Also present at the dinner were Deputy Minister of Public Health, Housing and Local Government Datuk Dr Penguang Manggil, Doppa president Dr Napolean Ningkos and the organising chairman of the dinner Councillor Peter Mering.