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NewsOils and Fats Sector Coverage

Sarawak Overtakes Sabah As Malaysia's Top Palm Oil Producer

Fats and oils processing
August 21, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Sarawak Chief Minister Datuk Patinggi Tan Sri Abang Johari Tun Openg has said that Sarawak has now become Malaysia's largest and leading palm oil producer in terms of planted area.

He explained that this is confirmed by a report from the Malaysian Department of Statistics, which recorded palm oil exports from Sarawak worth RM14.3 billion in 2023.

He added:

"Sarawak is the state that produces the largest quantity of palm oil in Malaysia. Previously, Sabah was in the lead, but we have now overtaken it."

"I understand that we exported palm oil worth close to RM14.3 billion overseas,
which means that palm oil development has become our largest export commodity."

His remarks came during a speech at the launch of a palm kernel crushing plant operated by the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) today.

Expanding On The Progress

He said that Sarawak, which has more than 1.6 million hectares of oil palm plantations, has recorded notable growth in its export sector.

"This means that if we continue to strengthen various initiatives, particularly in palm oil downstream production, Sarawak could easily achieve revenue exceeding RM14 billion."

He noted that this success has been achieved thanks to the hard work of landowners and participants in the SALCRA programme, who have played a key role in supporting the industry's growth and sustainability.

Another key factor behind Sarawak's success is the use of modern, more efficient technology to boost productivity and cut costs.

He said:

"The use of modern technology such as conveyor belt-equipped platform systems can improve efficiency and reduce losses.
This not only benefits cost and income, but also ensures a cleaner environment."

Downstream Products And Clean Energy

He affirmed that improved production efficiency will help boost income from downstream products such as biofuel and animal feed, which will strengthen Sarawak's economy.

In addition to palm oil-based products, he noted that palm oil processing can also produce hydrogen, which is seeing growing demand as a clean energy source.

He added:

"If hydrogen can be produced from the palm kernel cracking process, it could be used not only to generate electricity, but also in public transport.
This shows the importance of the palm oil industry as a contributor to clean energy production, converting waste into biofuel, animal feed, and hydrogen."

Call For Investment

In closing, he urged greater investment in the palm oil downstream processing sector to enhance competitiveness and ensure that Sarawak remains a key player in Malaysia's palm oil sector.