Sarawak Oil Palm Plantation Owners Association seeks five Federal policy changes to boost competitiveness

Dato Sri Huang Tiong Sii (centre) and Datu Joseph Blandoi (third left) during a courtesy visit at Parliament. Photo credit: TVS

By DayakDaily Team

KUCHING, July 7: Sarawak’s palm oil industry has urged the Federal government to introduce five policy changes it says are needed to keep the sector competitive, including reviewing the Windfall Profit Levy (WPL), exempting selected palm by-products from Sales and Service Tax (SST), and giving the State permanent representation on national palm oil bodies.

In a TVS news report, the proposals were presented by the Sarawak Oil Palm Plantation Owners Association (SOPPOA) during a meeting with Deputy Minister of Plantation and Commodities Dato Sri Huang Tiong Sii at Parliament on July 2. Led by its chairman Datu Joseph Blandoi, the SOPPOA delegation also shared an update on the State’s palm oil industry and the challenges faced by plantation operators.

According to the association, its members manage about 60 per cent of Sarawak’s 1.67 million hectares of oil palm plantations and operate nearly 80 per cent of the State’s 86 palm oil mills.

SOPPOA said Sarawak produced 4.49 million tonnes of crude palm oil in 2025, a 7.47 per cent increase from the previous year, accounting for 22.2 per cent of Malaysia’s total crude palm oil production.

The industry also recorded RM18.7 billion in palm oil exports and contributed RM801 million in State Sales Tax (SST) revenue.

Despite the sector’s strong performance, SOPPOA said plantation operators continue to grapple with labour shortages, rising operating costs, crop diseases and the need to comply with more than 60 international standards and regulatory requirements.

Besides reviewing the WPL, the association proposed long-term approval for burning empty fruit bunches to produce organic fertiliser, permanent Sarawak representation on national palm oil-related boards, exemption of SST on selected palm oil by-products, and a review of methane gas capture requirements at palm oil mills.

SOPPOA said Huang responded positively to the issues raised and instructed ministry officials to study the proposals and take the necessary follow-up action.

The association also reaffirmed its commitment to working closely with the Federal government to strengthen the competitiveness and sustainability of Malaysia’s palm oil industry. — DayakDaily