Some 38,587 smalhholders in Sarawak are involved in pepper cultivation

By Mohd Abdullah Lee

KUCHING, May 19 2026: Sarawak remains the country’s largest pepper-producing region, contributing to 98% of Malaysia's total production and as of March 2026, the state recorded 8,061 hectares of pepper cultivation involving 38,587 smallholders, Food Industry, Commodity and Regional Development Minister Dr Stephen Rundie Utom has said.

Caption: Minister Dr Stephen Rundie Utom says about 5,800 pepper farmers in Sarawak are expected to benefit under both the Premium Pepper Cultivation Scheme and the Pepper Maintenance Scheme, covering a combined area of 1,450 hectares.  

He said his ministry, in collaboration with Malaysian Pepper Board, will promote the development of a complete supply chain focusing on high-value downstream products to capture greater value, generate better profit margins, and strengthen the pepper industry.   

“Under the 13th Malaysia Plan (13MP), a sum of RM50 million has been approved under the Program Kemampanan Penanaman Lada Di Malaysia to support premium pepper cultivation and improve productivity,” he said in his winding up speech in the state legislative assembly (SLA).

Dr Rundie said about 5,800 pepper farmers in Sarawak are expected to benefit under both the Premium Pepper Cultivation Scheme and the Pepper Maintenance Scheme, covering a combined area of 1,450 hectares.

He added the Entrepreneurship and Micro, Small and Medium Enterprise (PMKS) Development Programme is allocated 31 with RM5 million aims to strengthen downstream entrepreneurship in the pepper industry through training and technical support in production, processing and marketing.

Dr Rundie said  the pepper board, this year, has been allocated with RM100,000  to implement the Food Safety Management System Certification (FSSC) 22000 certification programme in major pepper-producing areas in Sarawak to enhance global competitiveness and strengthen consumer confidence in the safety and quality of pepper products.

 He added a total of RM20 million has been allocated to complete the Pepper Industry Development Centre Project, which is expected to be fully completed by 2027.

“In addition, Saraspice Sdn Bhd, a wholly owned subsidiary of MPB, is also working closely with Malaysian Pepper Board and pepper farmers to advance sustainability initiatives that ensure Sarawak pepper meets international standards and global market expectations, while supporting farmers through competitive purchase prices and enhanced incentives for premium-grade produce.  

“Currently, there are two  existing collaborations or Memorandum of Understanding (MoU) between SaraSpice Sdn Bhd and two  prestige companies in Japan to collaborate on sustainable supply of Sarawak pepper to Japan.

“This is to ensure continuous and sustainable pepper production through a sustainable pepper development model / business model that directly links farmers with buyers or importers through exporters locally,” Dr Rundie said.

He said based on 2025 records, Malaysia’s pepper sector contributed RM2.27 billion to the nation’s Gross Domestic Product (GDP).

He added Sarawak pepper industry is estimated to contribute approximately RM2 billion annually equivalent to 1.3%-1.5% of the state’s GDP.

He said Sarawak pepper production amounted to 30,613 metric tonnes with an export value of RM159 million.