Evaluating the Influence of Ecosystem Conditions on Oil Palm Smallholder Productivity in Bakong and Marudi, Sarawak

Abstract

This study examines how six key components of a conducive ecosystem influence the productivity of oil palm smallholders in Bakong and Marudi, Sarawak. The components analysed comprise safety, family labour, effective leadership, technology, environmental conditions, and collaborative networks. Although agricultural productivity has been widely studied, empirical evidence that systematically investigates the combined effects of these interconnected ecosystem elements on smallholder performance remains limited, particularly within the Malaysian palm oil sector. To address this research gap, the study provides a context-specific assessment of ecosystem-based productivity drivers in one of Sarawak’s major oil palm–producing regions. A quantitative, cross-sectional survey design was adopted, involving 345 randomly selected smallholders drawn from the Malaysian Palm Oil Board (MPOB) Miri Branch database. Data were gathered using a structured questionnaire and analysed through descriptive statistics and multiple regression techniques. The results indicate that all six ecosystem components exert a positive effect on smallholder productivity, with safety emerging as the most influential factor (30.55%). However, only safety, family labour, and effective leadership were found to be statistically significant predictors. These findings align with economic production theory and Maslow’s hierarchy of needs, underscoring the role of both material resources and motivational factors in enhancing agricultural output. By integrating tangible and intangible ecosystem elements within a single analytical framework, this study offers novel insights and recommends that smallholder development initiatives adopt an ecosystem-based strategy that prioritises farm security, community empowerment, and appropriate technology utilisation. The outcomes hold important implications for policy development and the promotion of sustainable practices in the palm oil industry.