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Industry first or people first? – Government of Malaysia suppresses oil palm smallholders in the interests of industry

  • Publication Date | October 8, 2014
  • Document Type | Media Statement
  • Programmes | Forests & Biodiversity
  • Issues | Agrocommodities, Plantations
  • Tags | fresh fruit bunches, MPOB, NCR, Sarawak, smallholders
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Thousands of oil palm smallholders in Sarawak are severely impacted by the Malaysian Palm Oil Board’s (MPOB) directive prohibiting traders from purchasing fresh fruit bunches (FFBs) of ‘suspicious’ origins. The directive came into effect since 1 July, 2014.

It has come to Sahabat Alam Malaysia (SAM)’s knowledge that at least in the Baram region of the Miri division of Sarawak, the directive has subsequently resulted in the revocation and suspension of trading licences following subsequent enforcement actions by MPOB.

These traders, acting as middlemen between smallholders comprising mostly indigenous communities and the established millers owned by big plantation companies, have over the years formed an integral part of the supply chain of palm oil development in Sarawak.

It is learnt that for the Baram region, FFBs of ‘suspicious’ origins involved those purportedly stolen from plantations namely Sg Lelak, Loagan Bunut and Bukit Limau, which are plantations linked to two giant oil palm companies – Boustead and IOI.

These plantations are embroiled in on-going conflicts with local communities that are claiming native customary rights (NCR) over the planted areas following non-payment or unsatisfactory payment over the years of the promised dividends from the government-sanctioned joint-venture schemes.

It is further learnt that the MPOB’s directive was a decision taken by the Ministry of Plantation Industries and Commodities (MPIC) after a dialogue session with the oil palm plantation industry on 9 June, 2014.

Besides prohibiting traders from buying FFBs from these land dispute hot spots, MPOB in its notice to traders, included a general reference of the acceptable or legitimate maximum yield of 2 tonnes per hectare per month from smallholders. Sales of yield beyond the ‘acceptable’ volume are therefore considered to be of ‘suspicious’ origins. 

It further pronounced that traders who ignored the directive will be considered guilty of colluding with offenders and that MPOB will not hesitate to take stern actions including suspension of trading licences.

Smallholders are required to produce their certificate from MPOB whenever they want to sell their harvests to MPOB-licenced traders. However, it is learnt that many of these certificates are not updated when smallholders expanded their plantations due to administrative shortcomings on the part of MPOB itself.

The closure and suspension (some up to three months) of the ‘ramps’ (referring to the infrastructure provided by the traders on their premises) have caught many smallholders by surprise. 

The pro-big business move by MPOB to punish some of the smallholders is directly affecting the livelihood of thousands of innocent smallholders. Many indigenous communities had wholeheartedly participated in this form of land development encouraged directly by MPOB, other state government agencies and both the Federal and state governments.

They would now be forced to travel further afield to sell their harvest which means incurring higher costs of production and a diminished prospect for a better life. Many had taken out bank loans for 4-wheel-drive vehicle as a necessary means for them to transport their produce to the market and they might sink deeper into debt if they continue to default on their installments.

It is unclear how long the directive will be in effect and what is the ministry’s plan to resolve not only the disputes in the Baram region but similar disputes elsewhere in Sarawak.

The thoughtless actions of MPOB have revealed the government’s defence of its deforestation and unbridled oil palm development policies in the name of poverty eradication, to be a sham. The Malaysian Palm Oil Council’s claim of championing smallholders’ rights for prosperity is nothing more than a hollow public relation charade.

Nevertheless, we urge the government to pay urgent attention to the long-standing NCR disputes in Sarawak and call upon the industry to conduct business ethically by respecting claims of NCR.

Any solutions to the disputes must not ignore the overwhelming landmark court rulings that had upheld that indigenous territorial domain is beyond the government’s interpretation of what constituted NCR land.

S M Mohamed Idris

President

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Testimonials

Sahabat Alam Malaysia adalah satu badan bukan kerajaan (NGO) yang telah sekian lama berjuang mempertahan kelestarian alam. Ia juga mendidik masyarakat tentang pentingnya kebersamaan dalam pemikiran dan tindakan agar alam ini dapat kita wariskan kepada generasi hadapan dalam keadaan yang elok dan terpelihara. Dalam pada itu juga SAM giat membantu golongan nelayan pantai dalam memperjuangkan hak-hak mereka sehinggalah tertubuhnya Persatuan Pendidikan dan Kebajikan Nelayan Pantai Malaysia (JARING). Nelayan pantai sepenuh masa ini dididik oleh SAM sehingga mereka mampu memainkan peranan sebagai pemimpin nelayan yang meneruskan kesinambungan memperjuangkan hak-hak nelayan pantai lainnya. Sebagai contoh SAM telah berjaya menyedarkan masyarakat nelayan keperluan menjaga hutan paya bakau untuk kebaikan hasil tangkapan nelayan itu sendiri.
Jamaluddin Mohamad Bualik
Jamaluddin Mohamad BualikPersatuan Pendidikan dan Kebajikan Jaringan Nelayan Pantai Malaysia (JARING)
During the 1980s, I used to read about the Consumers’ Association of Penang (CAP) in the news. After retirement, some time in 2001, while lazing around, I read news about the construction of a carbon in leach plant using sodium cyanide to extract gold in Bukit Koman. My friends and I visited CAP and we were introduced to SAM and her legal team. We discussed the details of filing a case against the gold mining company and the department of environment with Ms Meenakshi Raman and her legal team. That was the beginning of a beautiful friendship between lawyers from SAM and many of us from Bukit Koman. We had many ups and downs in our struggle to shut down the gold mine that was causing a nuisance in our village. But, as a community we never gave up because SAM had our backs.
Hue Fui How
Hue Fui HowSecretary, Bukit Koman Ban Cyanide in Goldmining Action Committee (BCAC)
Sahabat Alam Malaysia adalah sebuah NGO yang memperjuangkan nasib masyarakat luar bandar khasnya. SAM menerima aduan-aduan masyarakat dan menyelesaikan masalah yang dihadapi. SAM telah mewujudkan ramai aktivis-aktivis sosial dan alam sekitar. Pada era 1980 dan 90an SAM sangat dihormati oleh masyarakat dan agensi kerajaan. Apabila media sosial menguasai maklumat maka SAM pun terkesan dan masalah masyarakat terus disalurkan dengan pelbagai cara. SAM perlu mewujudkan aktivis-aktivis pelapis yang muda untuk terus membantu masyarakat. SAM juga perlu membuat perubahan supaya banyak turun kelapangan dan jangan mengharapkan laporan media sahaja. Tingkatkan prestasi sebagaimana pada zaman kegemilangan SAM di era 80-90an.
Che Ani Mt Zain
Che Ani Mt Zain
SAM taught me the importance of social activism and the role it plays in upholding the rights of people and the protection of the environment. In my experience, SAM has never hesitated to speak up in defence of people and their environment, and has gone the extra mile to champion their rights, by helping communities take their battles to the higher ups and even to the courts.
Jessica Binwani
Jessica BinwaniPublic/Private Interest Lawyer
Semenjak kami kenal SAM, banyak pengalaman dan pengetahuan yg kami dapat. Kami telah belajar cara membuat baja asli daripada SAM. Semenjak itu, bermulalah minat kami dalam aktiviti pertanian. Dengan memperolehi kemahiran dalam membuat baja asli dan penanaman lestari, kami juga telah dapat menambahkan pendapatan sampingan kami. Ini lebih baik daripada tanah kami terbiar dan tidak diusahakan. Terima kasih SAM kerana sudi memberi bantuan dan tunjuk ajar kepada Persatuan kami.
Chedo Anak Nyuwen
Chedo Anak NyuwenPersatuan Penduduk Sg Buri, Bakong, Marudi
My journey with SAM started when her community organisers took me to the meet the paddy farmers of Kedah, connecting my growing interest in environmental law with our people who struggle to work the land in the face of pollution, replacement of traditional seeds with commercial hybrids and their accompanying chemical package of fertilisers and weedicides. I then had the honour to work with SAM in the struggle for the rights of the native communities of Sarawak, in defence of their forests from massive logging and destructive mega-projects. In every issue that SAM takes up, she combines rigorous research with the realities and voices of the communities to advocate for policies and laws that care for people and nature. From the courts to the elected legislators to policy makers and implementers and to the United Nations, SAM walks side by side with the communities in Malaysia. How can I not be inspired by the vision and passion of the generations of women and men who coalesce to form SAM?
Chee Yoke Ling
Chee Yoke Lingstudent of SAM, Executive Director of Third World Network, SAM’s sister organisation

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Sahabat Alam Malaysia (Headquarters)
No. 1, Jalan Joki, 11400 Penang,
Malaysia
Tel: +604 827 6930
Fax: +604 827 6932

Sahabat Alam Malaysia (Marudi Office)
129A, First Floor,
Jalan Tuanku Taha,
P.O.Box 216,
98058 Marudi, Baram, Sarawak,
Malaysia
Tel & Fax: +6085 758 973

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