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Building A Sustainable Future Together

  • 3 days ago
  • 4 min read
Smallholders sharing a light moment at the diffusion programme.
Smallholders sharing a light moment at the diffusion programme.

FOR over three decades, Siti Nor Hayati Ahmad Sekak worked on her 12-hectare oil palm farm in Kampung Tengah, Renggam, Kluang, using methods passed down from her parents — simple, time-tested and heavily dependent on instinct.


"I used to focus only on harvesting. I never knew how to assess seed quality or manage fertiliser properly. Now, I understand how to get better yields and manage my workers more efficiently," said the 60-year-old smallholder.


Siti's turning point came when she attended training under the Diffusion Programme conducted by the P&G Centre for Sustainable Small-Owners (CSS), a collaboration between Johor Plantations Group Berhad (JPG) and the Asia School of Business.


The training was part of JPG's broader mission to empower independent smallholders and promote responsible palm oil production.


The collaboration focuses on two key goals: empowering communities and ensuring sustainability by strengthening compliance, fostering farmer associations, sourcing responsibly and improving livelihoods by enhancing yields while upholding the NDPE Policy (No Deforestation, No Peat, No Exploitation).


Transformative Coaching for Better Yields

During a recent Diffusion session in Kampung Tengah, around 50 smallholders participated in hands-on workshops covering Good Agricultural Practices), financial literacy, Malaysian Sustainable Palm Oil (MSPO) and Roundtable on Sustainable Palm Oil (RSPO) Independent Smallholder certification.


The sessions demonstrated how small adjustments such as proper fertiliser timing, pruning and water management can significantly boost yields.


For Luqman Tarsom, 43, who has managed his family's oil palm plots for 17 years, the training was an eye-opener.


"Labour management was always my biggest issue. The training taught me how to plan work schedules more efficiently and make sure my workers focus on quality harvesting instead of just speed," he said.


Turning Knowledge into Better Income

The Smallholder Inclusion Programme (SIP) goes beyond training by offering financial incentives for smallholders who adopt sustainable practices.


Those who achieve RSPO certification are rewarded with a premium above the Malaysian Palm Oil Board reference price for their Fresh Fruit Bunches.


In 2024, JPG disbursed more than RM400,000 in incentives to certified smallholders and traders.


The premium, along with free group certification, enables participants to meet MSPO and RSPO standards, opening access to better markets and long-term income stability.


For Lee Nyuk Chin, 63, a retired teacher turned plantation owner in Kahang, Kluang, the difference has been life-changing. She joined the SIP after retiring and focused fully on her 16-hectare plantation.


Lee Nyuk Chin joined Johor Plantations Group Berhad’s Smallholder Inclusion Programme after her retirement.
Lee Nyuk Chin joined Johor Plantations Group Berhad’s Smallholder Inclusion Programme after her retirement.

"Through the training and certification, I've increased my income and learnt to manage the land more sustainably. It's satisfying to know that our hard work now meets international standards," she said.


Since 2016, JPG has championed sustainable smallholder development through collaboration with the Wild Asia Group Scheme (WAGS). Through WAGS, JPG supports independent smallholders in achieving certification, compliance and higher productivity.


To date, more than 319 smallholders managing 1,723 hectares have participated in SIP, benefiting from technical training, sustainability awareness initiatives and economic incentives.


Meanwhile, the CSS training equips farmers with research-based knowledge aligned with NDPE Policy.


Together, these collaborations empower smallholders and local traders to strengthen livelihoods, uphold sustainability standards and build a more inclusive palm oil supply chain.


Preparing For a Sustainable Future

Johor's smallholders face new realities as global markets tighten sustainability regulations, including the European Union Deforestation Regulation. Palm oil producers must prove that their products come from deforestation-free and traceable sources.


JPG has taken early steps to ensure smallholders remain competitive.


According to JPG chief commercial officer Wan Adlin Wan Mahmood, the company achieved 100 per cent smallholder traceability in June 2025, based on a 2023 baseline.


"This milestone is a major step toward achieving full smallholder certification by 2035," he said.


"It's not just about compliance, but it's also about transforming livelihoods and ensuring Johor continues to lead in sustainable palm oil. Embracing sustainable practices leads to greater productivity and stronger financial performance.


"As a vital part of JPG's supply chain, smallholders have played an indispensable role in driving the transformation of the industry. We encourage all smallholders to join us in adopting sustainable methods and become catalysts for positive change in Johor's palm oil sector."


JPG's proactive stance helps local growers prepare for future market demands while maintaining environmental integrity, ensuring Johor remains Malaysia's benchmark for responsible palm oil production.


Strengthening Johor's Rural Economy

The SIP also supports Johor's agricultural modernisation agenda, focusing on improving rural incomes and strengthening the state's agricultural competitiveness.


By providing technical knowledge, certification support and premium incentives, JPG helps create a more inclusive, resilient and profitable supply chain — benefiting both producers and the wider community.


Through SIP, more than 2,000 farming families are expected to benefit by 2035. The initiative represents a long-term investment, underscoring JPG's commitment to sustainable agriculture and rural upliftment.

 

Supporting Johor's Growers

Smallholders across Johor keen to adopt sustainable practices can approach JPG to strengthen plantation management and meet sustainability standards. The Group continues to work closely with growers and local partners to make certification more accessible and beneficial for independent farmers.


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