The oil palm industry is a cornerstone of Malaysia’s economy, with smallholder farmers in Serian, Sarawak, playing a key role. However, conventional farming methods such as heavy reliance on chemical inputs, unsustainable land clearing, and poor soil management have led to serious environmental degradation, reduced soil fertility, and long-term yield instability. Despite the promotion of sustainable agricultural practices as a solution, adoption among smallholders remains low. Many perceive these practices as costly, risky, or complex, and empirical evidence on their economic viability is limited, particularly at the local level in Sarawak.

In addition to smallholders, key stakeholders such as government agencies (e.g., MPOB, Sarawak Land and Forestry Departments), NGOs involved in sustainable agriculture, and palm oil companies that operate in or source from Sarawak play critical roles in shaping the adoption of sustainable practices. Their policy support, technical assistance, certification incentives, and market integration are vital to fostering sustainability among smallholders. Furthermore, further technical support and outreach can be sought from MPOB TUNAS officers operating in the respective localities of the study area. Addressing gaps in stakeholder engagement and institutional support is essential to promote widespread adoption and to align with national policies.

Hence, this study is closely aligned with the Dasar Agrokomoditi Negara (DAKN) 2021–2030, which emphasizes sustainable agricultural intensification, environmental preservation, and social inclusiveness. DAKN advocates for empowering smallholders, enhancing institutional support, and promoting low-carbon, climate-resilient farming systems. The research problem and objectives reflect DAKN’s strategic goals by addressing the barriers faced by smallholders in adopting sustainable practices and identifying institutional mechanisms to strengthen their participation in Malaysia’s agro-commodity value chain.

This research aims to investigate the economic, environmental, and social implications of sustainable oil palm farming among smallholders in Serian. The study will explicitly examine the roles of relevant government agencies, NGOs, and palm oil companies as part of its stakeholder analysis, recognizing that their support mechanisms influence smallholder decision-making and sustainability outcomes. Grounded in stakeholder theory, this research anticipates that:

1. Smallholders practicing sustainable agriculture exhibit higher net returns over time due to reduced input costs and access to premium markets;
2. Sustainable farming practices improve soil health, biodiversity, and lower greenhouse gas emissions compared to conventional farming;
3. Adoption of sustainable practices leads to improved health outcomes, stronger community cooperation, and increased resilience among smallholders.

To achieve this, a mixed-methods approach will combine surveys and interviews with 50–100 smallholders to assess economic, environmental, and social outcomes. Additional tools such as field observations and document analysis will also be applied to enrich data triangulation. A comprehensive Cost-Benefit Analysis (CBA) framework will be developed, tailored specifically to the local context, incorporating local cost structures, crop cycles, and socio-economic variables. The economic evaluation will employ management accounting tools such as Discounted Cash Flow (DCF) analysis to assess the long-term profitability of sustainable practices by calculating the present value of anticipated future cash flows. This allows for an accurate assessment of whether the higher initial investments such as training, certification, and infrastructure are justified by potential long-term gains through increased yields, reduced input costs, and premium market access. Sensitivity analysis will also be utilized to examine how variations in key parameter including input costs, market prices, and yield fluctuations influence the financial outcomes, thereby assessing the robustness and risk of adopting sustainable practices.
Additional indicators such as Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and Payback Period will also be calculated to measure investment efficiency and risk.

This integrated economic analysis, combined with environmental impact assessments and social dimension evaluations such as farmer health and community cooperation, will provide a holistic understanding of the benefits and challenges faced by smallholders. Environmental observations will include indicators such as erosion control, biodiversity presence, water management, and chemical input reduction. By grounding the analysis within local socio-economic realities and aligning with DAKN’s national development agenda, this research offers policy-relevant insights that support Malaysia’s transition toward sustainable and inclusive agricultural development.

Additionally, the scope of this research can be broadened to include other regions in Sarawak, allowing for a more comprehensive understanding of sustainable practices across the state. This expansion could further support DAKN’s national vision for resilient, climate-smart agriculture, and contributes toward Malaysia's goal of achieving net-zero carbon emissions by 2050.

This research acknowledges potential limitations, including the small sample size, which may limit generalizability, and potential data reliability issues stemming from self-reported surveys and recall bias. Moreover, external factors such as market volatility, climate variability, and changing policy frameworks may affect the accuracy and applicability of the projected economic outcomes. These limitations will be carefully considered during the analysis and data interpretation of results. Efforts will be made to triangulate data and contextualize findings accordingly.