The new SOPs would see both the smallholders and mid-sized players in Sabah’s oil palm sector bearing most of the losses during this CMCO period.
The Malaysian Estate Owners’ Association estimates that if the entire oil palm supply chain in Sabah is constrained in accordance with the new regulations, the state could see CPO production falling by as much as 300,000 tonnes a month, set against the present high crop season. “The new SOPs now in place will henceforth also impact the state’s sales tax revenue. The above potential loss in revenue of RM900 million per month from CPO will also translate to a RM68 million loss per month in the collection of Sabah sales tax,” the association said.
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