(Sabah No.23 tahun 1981)

“Maka adalah menjadi kewajipan Lembaga bagi memajukan dan membantu

dalam penyiasatan, perumusan dan pelaksanaan projek-projek

bagi kemajuan dan penempatan tanah dalam Negeri”


Background of LKTNS

LKTNS was established in 1969 as one of the numerous statutory bodies under the Chief Minister’s Department, formed to implement Sabah’s rural development programme. From its inception (1969-1982), it has been one of the major governmental agencies entrusted with the development of state land, mainly via land development and re-settlement schemes. Originally tasked to implement crop diversification to decrease the state’s dependency on rubber, today the board is well known for its instrumental role in the rapid expansion of the oil palm industry. With its mandate “to act as a catalyst in transforming rural areas and improving well being among the rural population in Sabah through land consolidation by way of commercial cultivation and modern farming”, the Board has successfully developed 12 settlers land schemes for palm oil with a total area of 11,773 hectares and successfully resettled 2765 people in rural areas. Within this period all settler programmes are under the management umbrella of LKTNS.

Corporatisation of LKTNS

During the Sixth Malaysian Plan (1991-1996), In 1990, the SLDB became the largest plantation in Sabah with more than 60,000 ha of commercial oil palm estates, eight CPO mills and twelve settler areas of over 11,773 ha. By the time of the corporatisation of the LKTNS in November 1996, the SLDB has transferred eight CPO mills, 80,000 ha of fully-planted oil palm estates to a new commercial wing of Sabah state agency called the Sawit Kinabalu Bhd., (Source: Corporatisation Agreement between The State Government of Sabah, Sabah Land Development Board, Sawit Kinabalu Berhad and Borneo Samudera Sdn. Bhd.) whereas the other types of estates which were occupied with settlers known as the social lands were still left under the management of the LKTNS. These estates included 11,773 ha, and other LKTNS investments under the ‘residual LKTNS’ (rLKTNS). In fact, other assets are included, a share in the refinery mill Lahad Datu Edible Oil (LDEO), and some share holdings in Sapi Plantation (Nangoh Estate) with IOI and Unilever.

LKTNS activity after reinstated

Entering the Ninth Malaysia Plan period (2006-2010), the agricultural sector revitalized to become the third engine of growth in Malaysia. Involvement from large-scale commercial farming was again focussed on oil palm, but there was a re-prioritising of focus on the community development programme, specifically ‘Konsep Baru’ under the ‘Gerakan Desa Wawasan’, a national agenda to fully eradicate poverty in Malaysia, which is part of the mandate of the new LKTNS.

Since being reinstated in 2001, the total area under the new management of the SLDB is 25,975 ha which has been expanded during the decade from 2001 to 2012 and involves 4,466 participants or settlers. This shows an increase of 289% of development in the area with a rate of 26% growth per year. It was noticed that throughout the new development target, there has been an increase of 275% in the number of participants, and a total of MYR$100 million dividend has been paid to the participants during the period 2001–2012.

The SLDB has 15,371 ha of land with oil palm in various schemes statewide which includes settlement schemes involving 3,172 participants (11,773 ha), smallholder schemes (374 ha) and 1,124 ha of commercial plantation. In 2012, there were about 19,856 ha of new project areas that have been developed with the assistance of local contractors, mostly in the Keningau District. During the period 2013-2017, the SLDB has a plan to further its development into the existing areas which includes an additional of 22,404 ha.