Land ownership issue and its implications on the productivity of smallholding planters

Research output: Contribution to journalArticle

Abstract

The national palm industry is greatly assisted by the production of the smallholding planters. Production on a land size of less than 100 hectares causes the output that is produced to not exceed the fixed target set by agencies such as the Malaysia Palm Oil Board (MPOB). In the district of Lahad Datu, Sabah, the target production as set by the Malaysia Palm Oil Board at 22 tonnes per hectare annually cannot be reached. On the contrary, the production that is gathered only includes 14 tonnes per hectare annually. Even though various approaches and strategies have been carried out by the Malaysia Palm Oil Board, it has still failed to reach the target that has been set. In conjunction with this, this study aims to examine the factors that cause the low productivity among the smallholding planters at the study area using the institutional economy approach. An in-depth interview was carried out with the smallholding planters and the related officers. The analysis shows that there are two reasons that cause the production of the smallholding planters to be low, namely a formal reason and an informal one. The formal reason includes the issue of land ownership that is not clear, the issue of the overlap of land ownership, and the rules for new land application. Meanwhile, the informal reasons involve the attitude of the smallholding planters, concerns of the planters that the plantations will be taken over by heirs, the location of the land, and the knowledge of the land ownership that is not clear.

Original languageEnglish
Pages (from-to)364-370
Number of pages7
JournalInternational Journal of Economic Perspectives
Volume10
Issue number4
Publication statusPublished - 2016

Fingerprint

Productivity
Ownership issues
Palm oil
Ownership
Malaysia
Factors
Plantation
In-depth interviews
Industry

Keywords

  • Institutional approach
  • Land ownership
  • Smallholding planters

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

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abstract = "The national palm industry is greatly assisted by the production of the smallholding planters. Production on a land size of less than 100 hectares causes the output that is produced to not exceed the fixed target set by agencies such as the Malaysia Palm Oil Board (MPOB). In the district of Lahad Datu, Sabah, the target production as set by the Malaysia Palm Oil Board at 22 tonnes per hectare annually cannot be reached. On the contrary, the production that is gathered only includes 14 tonnes per hectare annually. Even though various approaches and strategies have been carried out by the Malaysia Palm Oil Board, it has still failed to reach the target that has been set. In conjunction with this, this study aims to examine the factors that cause the low productivity among the smallholding planters at the study area using the institutional economy approach. An in-depth interview was carried out with the smallholding planters and the related officers. The analysis shows that there are two reasons that cause the production of the smallholding planters to be low, namely a formal reason and an informal one. The formal reason includes the issue of land ownership that is not clear, the issue of the overlap of land ownership, and the rules for new land application. Meanwhile, the informal reasons involve the attitude of the smallholding planters, concerns of the planters that the plantations will be taken over by heirs, the location of the land, and the knowledge of the land ownership that is not clear.",
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