No more new Provisional Leases for oil palm plantations

MIRI: The Sarawak government will no longer issue new Provisional Leases (PL) for oil palm plantations. Food Industry, Commodity and Regional Development Minister, Datuk Seri Dr Stephen Rundi Utom said this is being done to ensure access to international markets is not lost. “No more new PLs will be given. We are focusing on sustainable practices [...]

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MIRI : The Sarawak government will no longer issue new Provisional Leases (PL) for oil palm plantations. Food Industry, Commodity and Regional Development Minister, Datuk Seri Dr Stephen Rundi Utom said this is being done to ensure access to international markets is not lost. “No more new PLs will be given.

We are focusing on sustainable practices amidst growing concerns about deforestation and the European Union’s stringent regulations on imported commodities,” he said at the closing of the Palm Oil Management, Technology, Exhibition, and Conference (POMTEC) 2025 here. He emphasised that the state’s primary focus will now be on utilising Native Customary Rights (NCR) land and existing state land for oil palm cultivation. “We are praying that we can still utilise NCR and state land to help rural communities improve their economic and social conditions.



We have already planted 1.6 million hectares, which has benefited many. However, new PLs are no longer being issued.

” Dr Rundi noted that rural communities rely heavily on the oil palm industry for their livelihoods, and losing access to international markets, particularly due to deforestation concerns, would severely impact them. “If that is taken away from us, it will kill the economy of rural areas. This issue doesn’t just affect Malaysia but also countries like Indonesia and even Canada, which are fighting to ensure fair opportunities for their farmers.

” He highlighted the significant contribution of the palm oil industry, with revenue exceeding RM1 billion last year, and acknowledged the growing role of smallholders in the sector. “Smallholders are enjoying better returns because the oil palm industry provides a complete value chain. That’s why our focus is to create industries that can further benefit rural areas.

” Dr Rundi also stressed the need for diversification, mentioning crops such as rambutan and durian, but reiterated that the oil palm sector remains vital for Sarawak’s economy. “Our ministry’s responsibility is to create sustainable industries, and we hope major players in the industry will continue to support us.” The halt on new PLs reflects Sarawak’s commitment to balancing economic development with environmental conservation while safeguarding the livelihoods of its rural population.

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