KUCHING, Oct 20 2026: Food Industry, Commodity and Regional Development Minister Dr Stephen Rundi Utom said today Sarawak remains the backbone of Malaysia's pepper industry, contributing more than 98% of national production.
He said Sarawak recorded 39,122 pepper smallholders cultivating 8,168 hectares as of last month, reflecting modest growth compared with the same period in 2025.
"Sarawak Pepper continues to command a premium price for its pepper in the international market. The average Free on Board (FOB) price of Malaysian black pepper (ASTA) stood at approximately RM37,649 per metric tonne, remaining relatively stable compared with the corresponding period in 2025," he said in his winding up speech in the State Legislative Assembly (SLA) today.
He said the average FOB price of Malaysian white pepper (FAQ) increased by approximately 2.6%, from RM48,373 to RM49,642 per metric tonne.
"These figures reflect the continued value of local pepper in the premium market segment. Nevertheless, the relatively higher export prices compared with competing producing countries present an ongoing challenge to price competitiveness," he said.
"Therefore, efforts must continue to focus on improving product quality, strengthening traceability, expanding market access and developing higher-value downstream products to enhance the competitiveness and sustainability of Sarawak's pepper industry, while safeguarding the interests and livelihoods of our pepper smallholders," he said.
Under the 13th Malaysia Plan (13MP), Dr Rundi said the federal government has allocated RM50 million to implement the Programme Kemampanan Penanaman Lada di Malaysia to enhance sustainability and productivity.
He added the programme is expected to benefit 2,800 smallholders under the Premium Pepper Cultivation Scheme (PLP) covering 700 hectares while another 3,000 smallholders are expected to benefit under the Pepper Maintenance Scheme (PTLM) involving 750 hectares.
"As of September 2026, Malaysian Pepper Board (MPB) had provided assistance to 1,775 smallholders in Sarawak covering 276 hectares under PLP," he said, noting that under PTLM a total of 1,665 smallholders in Sarawak covering 311 hectares had received support to sustain and enhance their farm productivity.
"These initiatives aim to support the expansion of pepper cultivation, improve farm maintenance and increase yields, thereby strengthening smallholders' incomes and the long-term sustainability of the pepper industry," Dr Rundi stressed.
He explained that eligible pepper smallholders also receive support through BUDI MADANI AgriKomoditi, which provides monthly assistance of RM400 and as Aug 31 2026, applications from 10,655 pepper smallholders in Sarawak had been approved.
He said as a continuation of the 12th Malaysia Plan (12MP), MPB has been allocated RM41.85 million under Rolling Plan 1 of the 13th Malaysia Plan to implement ten (10) upstream and downstream development programmes.
He added as of September 30 2026, expenditure stood at approximately RM13.36 million, with commitments of RM25.84 million.
Dr Rundi also said MPB continues to strengthen industry understanding of and compliance with the requirements governing the use of the Geographical Indication (GI) for Sarawak Pepper, adding that as of September 2026, MPB had conducted three engagement sessions with pepper traders in Kuching, Sibu and Sarikei.
He said these sessions provided a platform to clarify GI requirements and reinforce industry players' role in preserving the integrity of the Sarawak Pepper designation.
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