The socioeconomic condition of peninsular malaysia’s indigenous households involved in small-scale oil palm farming

Ever since palm oil industry replaced rubber industry as the largest share of the agriculture sector in Malaysia in the 1970s, the development of palm oil industry has expanded by leaps and bounds. Today, Malaysia is the second largest producer and exporter of palm oil in the world. In 2019, the palm oil industry contributed RM 38.24 billion to Malaysian GDP and provided close to 1 million employment (including downstream sector). This phenomenal development is mainly attributed to the versatility of palm oil as well as its superior productivity. To the delight of the government and researchers too, palm oil cultivation is proven to be a good match for the indigenous people where reasonable income level can be obtained to raise their socio-economic status while avoiding uprooting the indigenous community far away from their current settlement area. The purpose of this study is to describe the socioeconomic condition of indigenous households involved in small-scale oil palm farming in Peninsular Malaysia. The research methodology of this study employed a qualitative approach and the researchers interviewed 15 indigenous households from two indigenous villages of Pahang state in Peninsular Malaysia. In this study, six socio-economic issues emerge giving negative impact to their relationship as well as productivity to these indigenous small-scale oil palm farming households. Social conflict occurs within communities when certain households obtained additional income by expanding land-use for farming. Other issues include lack of land for new oil palm farm, lack of mechanisation equipment, health concerns, gender inequalities, and lack of training. This study has made some recommendations to enhance the socioeconomic development of the indigenous households through active participation of MPOB advisory unit as well as the training division.