Core Business

Since 2001, the total area under the management of the LKTNS is 25,975 ha comprises commercial estates, leasing settlers, joint venture estate with smallholder growers, MESEJ, and joint venture with other state agency like the Keningau Agro-Venture Sdn. Bhd., which has been expanded during the time from 2001 to 2014 and involves 4,466 participants or settlers. Since 2014, the LKTNS was also mandated by the state government to engage in the communal land development supported by a federal government fund through the Ministry of Rural Development and Division.

Processing and mid-stream production

Historically the LKTNS commitment in down processing of palm oil for edible oil production has dated back in the early 1970s. In 1973, the SLDB’s schemes accounted for 29% of Sabah’s total oil palm area of 21,822 ha (Annual Report, 1973). In addition, three Crude Palm Oil (CPO) mills were built by the SLDB in Apas Balung near Tawau in 1969 which dated the first CPO mill in Sabah, and among others were at Klias near Beaufort, and at Sungai Manila in Sandakan which witnessed the SLDB’s operations to be supported by a US$14m loan over 25 years by the Asian Development Bank (ADB) enabling the Board not only to develop the palm oil processing system, but also the storing infrastructure to cater for the six on-going schemes of Apas Balung, Pegagau, Silabukan, Sungai Manila, Suan Lamba, and Klias.

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In 1975 the Board managed five major oil palm processing factories in Apas Balung (Tawau), Silabukan (Lahad Datu), Sungai Manila (Sandakan), Suan Lamba (Sandakan) and one in Beaufort (in the South-western part of Sabah) with a total processing capacity for the board of 120 tons per hour with an additional 15 tons per hour processed in Langkon, Kudat North in the western part of Sabah. At the same time the board had constructed storage facilities and three bulking installations at Karamunting, Sandakan (17,000 tons), Tanjung Batu, Tawau (9,500 tons), and Lahad Datu (5,000 tons).

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All these processing facilities were transferred to different ownerships after the corporatisation in 1996, and currently the LKTNS is still active on processing with a join venture CPO mills, to name a fews;

Lahad Datu Edible Oil Sdn Bhd (LDEO)

The LDEO is a refinary facility which is located within the POIC industrial area in Lahad Datu district. The LDEO is one of the residual assets after the corporatisation of the LKTNS in 1996. It was developed in 1992 and it’s a join venture operation between the LKTNS and the Maytown Sdn Bhd (Wilmar Group Internation Ltd.,).

Pandewan Palm Oil Mill Sdn Bhd (PPOMSB)

The LKTNS newest asset is the Pandewan Palm Oil Mill Sdn Bhd (PPOMSB) which started to be developed in 2013 and started operation in November 2015. Located in the interior of Sabah, PPOMSB is about 89km from Keningau township. The multi-million project is built on a 15-acre area within the LKTNS’s palm oil plantation estate. Currently, the mill is ready for commissioning and has the capacity to process more than 45 metric ton of fresh bunch fruit (FFB) per hour. In 04/11/2015 the cabinet of Sabah (18/2015) agreed for the LKTNS to form a joint venture with the Kilang Harta Hijau Perladangan Sawit Sdn. Bhd., to run the PPOMSB.

People everywhere eat more animal products as their incomes rise above the poverty level and as they become urbanized. In Sabah, the palm oil, petroleum and tourism industries have improved the living standard of the people mainly in larger cities like Kota-Kinabalu, Sandakan and Tawau. There are no data to confirm the exact milk consumption in Sabah, but by 2020 developing countries will consume 177 million metric tons of more milk than they did in 1996 – 1998.

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In line with the Federal government’s Economic Transformation Programme (ETP) as well as to diversify its source of income opportunity, in early 2012 the SLDB developed a 100-acre intensified dairy cattle farm on the land in Binakaan, Sook. The completion of its infrastructure in August 2012 saw the arrival of 250 imported Friesian-Sahiwal cattle’s.

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A month after it’s arrival the cattle commenced its first calving and milk production. Operating under the Sabah Livestock Dairies Breeder Sdn. Bhd., (SLDBSB), there are 157 dairy cows presently under the roof in Binakaan which produces an average of 14.5 litres of fresh milk perhead perday. With sufficient milk and meat supply, SLDB is planning to venture into downstream processing of dairy and meat products.

As of 2023, the rice Self-Sufficient Level (SSL) in the state of Sabah remains low at 22%. Rice is the staple food of the people in Sabah, with a population of approximately 3.59 million, based on the 2020 Malaysian Census. To meet the demand for rice products in Sabah, about 78% of rice supplies come from rice-exporting countries such as Thailand and Vietnam. The sole rice importer for the country, BERNAS, is responsible for importing both white rice and special rice, ensuring a consistent supply of rice within the country.

Sabaras was established on May 14, 2013, and has become one of the licensed rice wholesalers through a collaboration between the Sabah Land Development Board (LKTNS) and Malamega Sdn. Bhd., with the aim of supporting and strengthening the local market and the supply chain of imported rice products in the country.

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Sabaras Sdn Bhd (SSB) was incorporated under the Companies Act 1965 by the Sabah Land Development Board (SLDB). On June 7, 2017, SLDB fully took over the Sabaras Sdn. Bhd. company, led by Datuk Idrus bin Shafie as the Chairman of the company. On May 6, 2022, the Sabah Ministry of Finance under the Sabah State Government has invested 20% equity in the company. 

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The main business activity of SSB is the packaging and distribution of imported rice to local wholesalers and retailers in areas around Kota Kinabalu, Tuaran, Keningau, Papar, Beaufort, and Tambunan. The company's goal is to expand and diversify the types of wholesale and retail products to become more competitive in the market in Sabah. Which has led to Sabaras engaging in the repackaging of subsidized cooking oil under the brand "ONSOI" since 2021.  

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The "ONSOI" cooking oil factory was inaugurated on September 9, 2020, and has been in full operation since November 2021. Sabaras is the sole repacker of 1kg subsidized cooking oil packets located in the interior of Sabah, specifically in the Keningau district. Sabaras primarily focuses on wholesale sales to local wholesalers and retailers in several areas such as Keningau, Sook, Tambunan, Nabawan, and Tenom. .