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NewsOils and Fats Sector Coverage

Malaysian MP Advocates for Downstream Expansion and Biomass Innovation in Sabah Palm Oil Sector

Fats and oils processing
November 5, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Datuk Seri Panglima Wilfred Madius Tangau, the Member of Parliament for Tuaran, has formally called upon the Ministry of Plantation and Commodities to prioritize the development of the palm oil-based downstream industry in Sabah. His proposal emphasizes the strategic utilization of biomass and crude palm oil (CPO) to manufacture high-value derivatives rather than relying solely on raw exports.

Speaking during the 2027 Budget debate at the Committee level in the Dewan Rakyat on Wednesday, Tangau underscored that Sabah possesses the necessary potential to cultivate a robust downstream processing sector. He noted that such development would significantly bolster commodity value, spark new business opportunities, and secure long-term employment for the local workforce.

In his address, the MP requested the ministry to detail its strategies for attracting foreign and domestic investment, facilitating technology acquisition, and securing global market access for Sabah's downstream products. 'We want these materials to be processed in Sabah into high-value products, creating businesses and jobs for our children,' he stated, highlighting the socioeconomic necessity of local value addition.

To ensure a coordinated approach, Tangau suggested a multi-agency collaboration involving the Sabah Government, the Ministry of Investment, Trade and Industry (MITI), and POIC Lahad Datu. He drew specific attention to the untapped potential of palm oil-derived cellulose, which can be transformed into industrial fibers, fabrics, and textiles, as well as nanocellulose—a high-tech material with diverse industrial applications.

Furthermore, he urged the ministry and the Malaysian Palm Oil Board (MPOB) to provide financing for pilot projects. According to Tangau, these initiatives should bridge the gap between technology providers, investors, and industrial buyers, allowing stakeholders to evaluate production costs, quality standards, and market viability before committing to large-scale industrial manufacturing.

Source: Jesselton Times