Palm Oil Industry Funds Borneo Forest and Wildlife Restoration

Malaysia’s palm oil industry is funding large-scale forest restoration projects across Sabah to improve its environmental standing, yet conservationists remain skeptical about whether these isolated efforts can effectively reverse decades of habitat destruction.

The industry, which operates on nearly 1.5 million hectares in Sabah, is increasingly under pressure from international buyers and regulations like the European Union Deforestation Regulation. In response, the Malaysian Palm Oil Green Conservation Foundation (MPOGCF) has invested nearly RM10 million into wildlife corridors and forest replanting.

Despite these investments, experts argue that fragmented restoration efforts fail to provide the connectivity across large areas required for species survival. “Current restoration efforts are making an important contribution, but at the scale of forest loss, are inadequate to address the full scale of historical habitat loss and fragmentation,” said Robecca Jumin, head of conservation in Sabah for World Wide Fund for Nature (WWF) Malaysia.

Managing the remaining 1,000 Bornean elephants in Sabah is difficult because they frequently traverse plantation boundaries. While companies like Sabah Softwoods have reported a reduction in annual crop damage costs from RM500,000 to RM5,000 after establishing wildlife corridors, researchers suggest these figures do not necessarily indicate improved population health.

Current studies are testing whether planting Napier grass can keep elephants within designated corridors rather than allowing them to wander into oil palm estates. “Plantations are the actors closest to wildlife impacts, but they cannot be expected to carry the full cost of delivering a public conservation outcome,” said Nurzhafarina Othman, an elephant expert and researcher at Universiti Malaysia Sabah (UMS).

Beyond elephants and orangutans, habitat fragmentation threatens a wide range of species, including Bornean clouded leopards, sun bears, and banteng wild cattle. Experts emphasize that the quality and location of restored land are just as critical as the total area replanted.

WWF Malaysia maintains that restoration must complement, rather than replace, the protection of existing, intact forests. Monitoring continues at conservation centers, such as the Bornean Sun Bear Conservation Centre in Sandakan, to track the welfare of species affected by these shrinking habitats.

Sabah has 29,918 oil palm smallholders managing over 184,000 hectares of land. These smaller growers often lack the technical resources and financial capital required to maintain wildlife corridors, making it difficult to scale conservation efforts beyond large corporate estates.

The industry uses metrics such as reduced crop damage costs and observational data, such as orangutans returning to nest in replanted areas. However, experts note these sightings do not confirm overall population recovery or the long-term viability of the restored habitats.

Companies are responding to commercial demands from international supply chains, including the European Union Deforestation Regulation. This regulation restricts market access for commodities linked to recent deforestation, forcing the industry to prove its environmental compliance.

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