TRADA calls for greater support for Malaysia’s 450,000 palm oil smallholders

 

IN emphasising the crucial role of smallholders in Malaysia’s palm oil industry, NGO Pertubuhan Transformasi Dayak (TRADA) has called for stronger support to ensure their continued success.

TRADA which is a key advocate for the Dayak community in Sarawak further recognises that smallholders play an essential role in sustaining the industry, thus contributing to both national economic growth and the livelihoods of rural communities.

TRADA’s reaction comes following the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) whereby Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stressed the importance of Malaysia’s 450,000 smallholders in maintaining the country’s palm oil sector.

“Global palm oil production in 2024 reached 79.40 million metric tonnes with Malaysia contributing 19.34 million tonnes (or 24.3%),” TRADA president Joseph Janting pointed out.

TRADA president Joseph Janting

“The country also maintained strong export performance by shipping 16.88 million tonnes. These figures reaffirm Malaysia’s position as a key global producer with smallholders playing a pivotal role in ensuring a steady and sustainable supply.”

As stakeholders push for higher sustainability standards and regulatory compliance, Janting said it is critical for smallholders to be equipped with the necessary resources, training and market access to remain competitive.

“Smallholders are at the heart of the Malaysian palm oil industry,” revealed Janting.

“Ensuring they have access to the right tools, knowledge and opportunities is essential for the sector’s long-term sustainability. By empowering them, we safeguard not only their livelihoods but also Malaysia’s position as a leader in sustainable palm oil production.”

Environmental impact

On this note, TRADA acknowledged that the government’s initiative to conduct random checks on palm nurseries to improve seedling quality is a positive step toward enhancing productivity and sustainability.

However, the grouping emphasises that more efforts are needed to help smallholders access high-quality planting materials, modern agricultural techniques and financial support to thrive in an evolving global market.

This comes on the back of the prevailing misconceptions about palm oil’s environmental impact which remains a major challenge for the industry to overcome.

However, Malaysia has been at the forefront of ensuring that palm oil production adheres to the highest sustainability standards.

This has been in part due to initiatives like the Malaysian Sustainable Palm Oil (MSPO) certification scheme which is a nationally mandated sustainability standard enforceable by law and the first of its kind in the world.

MSPO is a national initiative aimed at promoting sustainable palm oil production practices and improving traceability right across the supply chain in Malaysia’s palm oil industry, including the nation’s palm oil smallholders who account for 26% of Malaysia’s oil palm planted area.

As of end-2024, close to 87% of Malaysia’s oil palm planted area covering about 5.61 million hectares have achieved certification under MSPO with a target of more than 90% of independent smallholders expected to achieve MSPO certification by end-2025.

Positive government action has continued in more recent years with the National Forestry Act amended in 2022 to stiffen penalties for illegal logging.

Since 2019, Malaysian palm oil production has not exceeded 19.86 million metric tonnes per annum partly because the size of oil palm plantation has decreased by 4.3% or 252,445 hectares over the past four years.

This decline reflects Malaysia’s decision to refrain from expanding into new areas to prioritise environmental concerns.

Moving forward, TRADA calls for increased collaboration between policymakers, industry stakeholders and smallholder associations to build a more resilient and inclusive palm oil sector.

“Strengthening support for smallholders will not only drive economic benefits but also enhance Malaysia’s global reputation as a leader in sustainable palm oil,” added Janting. – Focus Malaysia