Small farmers are important to Malaysia’s palm oil industry and, with the right incentives, can become “users” technology” to improve life. Despite intense competition and regulatory pressure, Malaysia remains the world’s second largest producer of palm oil, with smallholders controlling 26.4 percent of total plantations by 2023 , increased by the year 2022. 40 hectares is the main opportunity in the sector. However, they face significant challenges, including limited access to finance, technology and markets. Although government policies aim to support them, these policies fail to meet their needs. Smallholder farmers need continuous support, including access to seeds, fertilizers, and training in good farm management practices, to combat environmental challenges like climate change and disease. Compliance with international trade requirements, such as the European Deforestation Regulation, adds further challenges, particularly in terms of traceability and market access. To help smallholders succeed, Malaysia needs stronger policies and strategies, including better access to affordable credit, mechanization, and technology transfer. Programs like the Tunjuk Ajar Nasihat Sawit have helped farmers achieve Malaysian Sustainable Palm Oil (MSPO) certification, leading to financial assistance, technical support, and increased income.
Mechanization and the Internet of Things can improve agricultural practices, but the cost of technology remains a barrier. Mobile applications can provide farmers with real-time market information, weather forecasts and farm management updates. More incentives are needed to encourage smallholder farmers to adopt technology and improve their livelihoods. Establishing cooperatives can help with funding, training and market access. The palm oil industry offers many job opportunities throughout the production chain, including research, agriculture and downstream activities. By 2030, Malaysia needs a dynamic framework to address the social challenges facing small-scale oil palm growers and attract a younger generation to the sector.