MEDIA RELEASE
For Immediate Release

Sustainable Oil Palm Growers Cooperatives empower independent oil palm smallholders’ economies

Tenom, 16 January 2026 – More than 220,000 independent oil palm smallholder families nationwide now earns income from their oil palm plantations covering over 866,000 hectares. With guidance from the Malaysian Palm Oil Board (MPOB), independent smallholders are able to navigate various economic challenges through active involvement in Sustainable Palm Oil Growers Cooperatives (KPSM).

Through 49 MPOB Palm Oil Outreach and Information (TUNAS) Offices across the country, MPOB provides support, advisory services, and technical guidance to independent smallholders through the establishment of KPSM and Malaysian Sustainable Palm Oil (MSPO) Certification, ensuring competitiveness and access for Malaysian palm oil to the global market.

Speaking at a community program in Kemabong, Tenom, Sabah yesterday, Datuk Dr. Ahmad Parveez Ghulam Kadir, Director General of the Malaysian Palm Oil Board (MPOB), stated that the agency remain committed to empowering independent oil palm smallholders as one of its primary roles, aligned with Government efforts to improve the welfare of rural communities and the sustainability of the national palm oil industry.

He also encouraged independent smallholders to collectively cooperate to ensure the success of the KPSM, which has the potential to grow the income of its members by efficient farm management, lowering the operational costs, as well as enhanced access to the market and industry support services.

“KPSM can venture on entrepreneurial activities such as supplying fertiliser and essential goods for smallholders, road repair services, petrol stations, as well as selling fresh fruit bunches (FFB) directly to mills to obtain competitive prices,” he said during the groundbreaking ceremony for the KPSM Kemabong Tenom Berhad’s Petrol Station (Portable Container System – PCS) yesterday.

In a separate program in Apin-Apin, Ahmad Parveez also launched the Second Weighing Centre of KPSM Apin-Apin Bingkor Berhad as a strategic step in strengthening the local independent smallholder FFB marketing system. This facility plays a role in increasing the transparency of the weighing process, accelerating delivery to the mill, and reducing logistics costs, while helping smallholders obtain fairer and more competitive returns. This initiative is in line with MPOB’s commitment to empower cooperatives as a catalyst for increasing the income and welfare of the oil palm smallholder community.

In the meantime, MPOB also distributed reading materials and references related to palm oil, including The Palm Comics series, the Red Palm Oil – A Choice for A Healthy Lifestyle book, and the Sawit Dalam Sajian: Legasi Rasa Malaysia recipe book. Additionally, MPOB donated 500 sets of colour pencils and school bags to the students of Sekolah Kebangsaan Kemabong, Tenom, to inspire and provide exposure to palm oil science and research, as well as its myriads of daily uses among educators and students.

“We hope MPOB’s contribution would awaken the spirit and motivation of the students as the school session begins while enhancing exposure to the science and technology behind the country’s successful oil palm industry,” said Ahmad Parveez.

“Palm oil is not only used for food like frying but is also a key ingredient in cosmetics, medicines, vitamins, biodiesel, and various daily products.

“Last year, the industry contributed over RM112 billion to national export revenue and created employment for hundreds of thousands of Malaysians,” he added.