MALAYSIA’S reputation as the world’s second-largest producer of palm oil is built not only on sprawling estates owned by major conglomerates but also on the modest plots tended by independent smallholders.
These farmers, often managing only a few hectares, account for nearly one-fifth of the nation’s planted area.
Their collective success or failure will determine whether the industry can meet global sustainability standards while sustaining livelihoods across rural Malaysia.
For decades, smallholders have been viewed as the weakest link in palm oil’s global supply chain.
Without the technical knowledge, capital or networks of big players, they were often excluded from certification schemes and sidelined in policy debates.
That narrative, however, is shifting.
A growing ecosystem of support programmes, led by companies like SD Guthrie Bhd’s downstream arm, NGOs such as Solidaridad, and research institutions like the Center for Sustainable Small-owners (CSS) at the Asia School of Business, is beginning to change how smallholders are seen and how they see themselves.
These efforts are not abstract. They translate into better farm records, more efficient fertiliser use, income diversification and, in some cases, yields that rival the best plantations.
They also produce compelling stories of resilience and determination.
Rosli’s Formula: Discipline, Data at the Heart of Farming
When The Malaysian Reserve (TMR) spoke to Rosli Abdul Rahman, the first thing he shared was not his oil palms but his logbook.
The farmer from Johor now manages five farms, having started with just one when he joined the CSS programme in 2021.
Under the scheme, he has pushed his yield to 36.8 metric tonnes per hectare (MT/ha), more than double the national average of 17MT/ha.
Rosli explained that his progress stems from a disciplined approach to daily work and record-keeping.
Every activity on his farm is written down, from fertiliser applications to harvest volumes. This habit allows him to analyse what works and what needs improvement.
His focus on consistency, he told TMR, has become part of his identity.
“You begin with a good attitude. From attitude comes discipline. And when you stick with it long enough, it becomes part of your culture,” he said.
Rosli’s discipline extends beyond paperwork. He has built a routine that ensures tasks are done on time, from pruning to fertilising.
This has not only improved yields but also created a model that other farmers can observe.
He now serves as a mentor within Pertubuhan Tani Niaga Lestari Negeri Johor (Pertaniaga), the independent smallholder association supported by CSS in Johor.
Rosli added that the recognition he recently received from the Malaysian Palm Oil Board, through the 2025 Anugerah Tokoh Pekebun Kecil Sawit, reinforced the value of discipline.
“Once you find what works for your farm, keep at it. God willing, it will lead to success,” he advised.
Every activity on his farm is written down, from fertiliser applications to harvest volumes. This habit allows him to analyse what works and what needs improvement.
His focus on consistency, he told TMR, has become part of his identity.
“You begin with a good attitude. From attitude comes discipline. And when you stick with it long enough, it becomes part of your culture,” he said.
Rosli’s discipline extends beyond paperwork. He has built a routine that ensures tasks are done on time, from pruning to fertilising.
This has not only improved yields but also created a model that other farmers can observe.
He now serves as a mentor within Pertubuhan Tani Niaga Lestari Negeri Johor (Pertaniaga), the independent smallholder association supported by CSS in Johor.
Rosli added that the recognition he recently received from the Malaysian Palm Oil Board, through the 2025 Anugerah Tokoh Pekebun Kecil Sawit, reinforced the value of discipline.
“Once you find what works for your farm, keep at it. God willing, it will lead to success,” he advised.
A former civil servant, she converted the land from a rubber plantation and managed it together with her late husband.
When he died in 2021, she took full charge, eventually becoming one of the first women to join CSS programme.
Hamisah’s yields have risen from 38 tonnes to 42 tonnes annually in just three years. But her story is not only about numbers.
She has become a leader in her community, ensuring other women are not left behind. She often drives neighbours to training sessions in her van and shares lessons openly.
“I teach them how to fertilise based on the right measurement and the proper use of personal protective equipments (PPEs),” she shared with TMR, emphasising that attention to small details prevents larger problems.
At first, Hamisah admitted to being hesitant about joining the programme. Yet she now sees clear benefits.
“If we do not teach our community, who will?” she asked.
Hamisah also highlighted challenges. Finding reliable labour is difficult and she often takes on fertilising herself to ensure schedules are met.
She believes agriculture should be introduced earlier in schools, so the next generation views farming as dignified work.
Her insistence that women participate more actively in agriculture is also reshaping community norms, giving a new face to palm oil’s sustainability drive.
SD Guthrie’s Long-term Commitment
The corporate sector’s role in supporting smallholders is central.
SD Guthrie downstream sustainability head Mark Wong told TMR that the company works with about 35,000 smallholders globally, including 2,000 in Malaysia through the SD Guthrie Solidaridad-Colgate programme.
He explained that in Malaysia, the relationship is indirect, since independent smallholders sell to traders before the fruit reaches SD Guthrie’s mills.
To bridge this gap, the company partnered with Solidaridad and Colgate-Palmolive Co to run a landscape-level initiative in Bera, Pahang.
“The involvement of brands like Colgate, who are far downstream, shows that sustainability is now a shared responsibility across the supply chain,” Wong said.
The programme has trained more than 2,100 farmers in Malaysia, surpassing the initial target of 1,800.
Training focuses on good agricultural practices such as pest management, fertiliser use and waterway protection.
Farmers also receive administrative support, including help with the Malaysian Palm Oil Board (MPOB) licensing and compliance with the Malaysian Sustainable Palm Oil (MSPO) standard.
Wong explained that feedback has been positive but stressed that results take time. Building trust and measuring yield improvements can take years.
He added that the programme is now preparing for a second phase.
“Working with smallholders is not just a one or two-year project. It is something you really need to put in for the long term,” he told TMR.
CSS Perspective
For CSS director Professor Asad Ata, the stakes are clear. He said beyond certificates, the research institution celebrates the change small-holders unlocks for livelihoods and communities.
He explained that the CSS programme, launched with support from P&G and Temasek Foundation, has certified nearly 900 farmers and helped many improve yields by up to 35% over three to four years.
Certified farmers also receive premiums of RM20 to RM25/MT, creating financial incentives for sustainable practices.
Asad said the core of the programme is community empowerment. By organising farmers into associations like Pertaniaga, small-holders gain bargaining power and peer learning opportunities. Model farms serve as demonstration plots, showing others what is possible when good practices are adopted.
He acknowledged that challenges remain systemic. Independent smallholders often manage fragmented plots of less than 1ha, lack direct links to mills and face grading standards designed for larger estates.
These factors reduce their bargaining power and discourage investment in better practices.
To overcome this, Asad recommended a holistic approach: Support during replanting years when income is low, yield intensification programmes once palms mature and digital traceability tools to meet evolving standards like the EU Deforestation Regulation (EUDR).
He also urged more horizontal partnerships among NGOs and vertical partnerships across the supply chain.
“The future of sustainable palm oil depends on whether smallholders feel motivated. There has to be a business case for them, not just a compliance burden,” he told TMR.
Solidaridad Inclusión Model
On the other hand, Solidaridad country manager Law Chu Chien said Perak’s landscape illustrates the stakes.
As Malaysia’s second-largest state for smallholders, accounting for 17.5% of the total planted area, its proximity to central forest spines requires careful balance between farming and conservation.
He explained that this is why Solidaridad partnered with SD Guthrie and Colgate-Palmolive.
“The involvement of private corporations such as SD Guthrie and Colgate-Palmolive is crucial in supporting sustainable development among smallholders through knowledge sharing and capacity building,” he told TMR.
Beyond training, Solidaridad promotes income diversification, such as oyster mushroom cultivation, to help farmers cope with low yield periods caused by replanting or weather.
Communications officer Maria Ariessa Mohd Tahir shared that the ultimate goal is compliance with MSPO through consistent application of good agricultural practices.
“The ultimate goal for our project is to ensure smallholders’ compliance to national standards (MSPO) through consistent GAP application in their farms,” she told TMR.
She explained that Solidaridad’s trainers conduct field visits and interviews to verify that farmers adopt what they have learned.
Trainers also help smallholders register with MPOB, opening doors to services and digital traceability platforms such as Sims and GeoSawit. These tools are increasingly critical as farmers prepare for EUDR requirements.
Maria Ariessa further outlined Solidaridad’s sustainability assessment matrix, which scores farmers on economic, legal, environmental and social criteria.
This twice-yearly assessment classifies smallholders as low, medium or high risk, guiding targeted support.
By improving efficiency and fertiliser management, the matrix reduces pressure for land expansion while encouraging climate-resilient farming.
Linking Local Discipline to Global Markets
The stories of Rosli and Hamisah, together with corporate and NGO perspectives, highlight a common theme in which sustainability is not an abstract concept but a lived practice.
For Rosli, it is about keeping a disciplined logbook while for Hamisah, it is about driving neighbours to training sessions.
For Wong, it is about long-term engagement with farmers he may never meet directly while for Asad, it is about systemic reform.
For Solidaridad, it is about risk matrices that translate sustainability into measurable progress.
Malaysia has more than 275,000 independent small-holders. Together, they hold the key to whether the industry can improve yields without opening new land, comply with stricter international rules and prove that sustainability and livelihoods are not opposing goals.
The path forward is complex. Smallholders face labour shortages, volatile prices and systemic disadvantages in how their produce is graded and marketed.
Yet as the stories from Johor and Perak show, change is possible.
When smallholders are empowered with knowledge, supported by institutions and connected to fairer markets, they become not the weakest link but the most important one.
As Asad told TMR, the goal is not only to certify farmers but to transform communities. The measure of success, he argued, is whether smallholders feel ownership of the sustainability agenda — whether discipline, diversification and digital tools become second nature.
That transformation is already visible in the ledgers of Rosli, the fertiliser routines of Hamisah, the training modules of Solidaridad and the supply chain partnerships of SD Guthrie.
It is a reminder that the future of palm oil will not be decided only in corporate boardrooms or international negotiations.
It will also be decided on the small plots of land where Malaysian farmers choose, each day, to farm differently.
Originally published by The Malaysian Reserve.
