Kuching: A new law needs to be enacted to manage and optimise the utilisation of waste from palm oil mills in Sarawak as part of a strategic move towards a green and sustainable oil palm industry. Sarawak Premier, Tan Sri Abang Johari Tun Openg, emphasized the importance of structured waste management, which would not only add value for oil palm operators but also help establish an agricultural sector aligned with environmental, social, and corporate governance principles, the international benchmark for sustainable investment.
According to BERNAMA News Agency, Abang Johari highlighted the necessity of collecting oil palm waste in large volumes, approximately 100 tonnes, to ensure the efficient and profitable production of downstream products such as biofuels, animal feed, organic fertilizers, and hydrogen. He suggested that the private sector and the government collaborate to set up a dedicated entity to collect all waste from the 85 palm oil mills across Sarawak.
Speaking at the launch of the Sarawak Land Consolidation and Rehabilitation Authority's palm kernel crusher plant, Abang Johari mentioned that further discussions on the matter would be held with Sarawak Minister for Food Industry, Commodity and Regional Development, Datuk Seri Dr Stephen Rundi Utom, and the State Attorney General.
Abang Johari stressed that the proposed legislation should be viewed in the context of Sarawak's oil palm industry's true capability and potential. He noted that Sarawak has now overtaken Sabah to become Malaysia's largest oil palm producer. In 2023, Sarawak's oil palm export to the international market stood at around RM14.3 billion, with expectations of increased revenue through the diversification of oil palm output via the production of downstream products.
By shifting focus from exporting raw materials to creating added value through downstream products, Abang Johari believes that the state's revenue from oil palm could exceed RM14 billion, marking a significant step towards realizing Sarawak's economic potential in the oil palm industry.