Sarawak pepper, often referred to as the “King of Spices,” has long been a cornerstone of Malaysia’s agricultural heritage and a source of pride for the people of Sarawak.
Contributing to more than 95 per cent of Malaysia’s pepper industry, Sarawak’s black and white pepper are recognised globally as premium products, sought after for their distinctive aroma, pungency, and quality.
Yet, behind this celebrated reputation lies a sector grappling with profound challenges.
Smallholder farmers, who constitute approximately 99 per cent of pepper operators in Sarawak, face persistent obstacles including outdated cultivation practices, volatile market prices, rising production costs, climate unpredictability, and limited access to modern agricultural technologies.
These challenges have constrained productivity, suppressed rural incomes, and threatened the long-term sustainability of an industry that holds immense economic potential for the state.
In recent years, however, a quiet revolution has been taking root across the pepper farms of Sarawak.
Driven by a convergence of government vision, technological innovation, and growing global demand for sustainably produced spices, the sector is undergoing a fundamental transformation.
The integration of sustainable agricultural practices with smart farming technologies is emerging as the definitive pathway for smallholder farmers to optimise their efforts, increase yields, and enhance their revenue streams.
This article provides a comprehensive examination of this transformation, exploring the current landscape of Sarawak’s pepper industry, the strategic vision articulated by Sarawak’s leadership, the global market dynamics shaping the sector’s future, and the suite of precision agriculture tools that are redefining what is possible for rural pepper farmers.
Through a detailed analysis of technologies such as AgriSmartEye, the LadaGo application, Dr.
LADA and NutriLada, drone-based hyperspectral imaging, and Internet of Things (IoT) sensor networks, this article demonstrates how the marriage of sustainability and digital innovation is not merely a policy aspiration but a tangible reality that is already delivering measurable improvements in farm productivity and farmer livelihoods.
Transforming Sarawak’s Agricultural Landscape
At the heart of Sarawak’s agricultural transformation is the visionary leadership of Premier Sarawak Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg.
The Premier has consistently articulated a bold and comprehensive vision for modernising the state’s agricultural sector, positioning it as a key engine of economic growth and a pathway toward achieving high-income status by 2030.
His vision is anchored in a fundamental recognition that traditional farming practices, while culturally significant, are no longer sufficient to meet the demands of a rapidly changing global economy and the aspirations of rural communities.
Speaking at the launch of the RM100 million Sarawak AgriFood Tech Sustainability Impact Fund, the Premier delivered a clear and compelling message about the imperative for change.
“Our vision is to modernise and commercialise the sector by employing smart farming techniques and forging global partnerships to accelerate production.
This modernisation will support higher value-added downstream food processing, particularly for export markets,” he declared.
This statement encapsulates the dual pillars of his agricultural strategy: the adoption of cutting-edge technology and the pursuit of international market integration.
The Premier’s vision extends far beyond mere technological adoption.
He has consistently emphasised the need for a fundamental shift in mindset among farmers and the broader agricultural community.
“In the past, you used a dialling phone, but today you use a smartphone.
We need to change the mindset of farmers to a more corporate one,” he remarked at the 1st International Conference on Biotechnology, Smart Farming, and Entrepreneurship for Food Security in 2023.
This call for a corporate mindset reflects a deeper understanding that agriculture must be viewed as a business enterprise rather than a subsistence activity.
The Premier has underscored the need to shift away from the perception of poor farmers struggling with hardship and elevate their status to farm managers, recognising that agriculture has evolved from mere food cultivation to encompassing a comprehensive supply chain from farm to market, including exports.
The strategic framework for this transformation is embedded in Sarawak’s Post COVID-19 Development Strategy 2030, which identifies food and agriculture as a key economic sector driving the state’s growth.
The Premier has set an ambitious goal for Sarawak to become a net food exporter by 2030, a target that reflects both the state’s vast agricultural potential and the urgency of reducing its dependence on food imports, which totalled RM78.8 billion nationally in 2023, with Sarawak accounting for RM6.8 billion of that figure.
“This dependence on imports is unsustainable,” the Premier warned, pointing to unpredictable climate conditions, geopolitical conflicts, and disruptions caused by diseases such as COVID-19 as having exposed the fragility of global food supply chains.
The Premier’s commitment to digital transformation in agriculture is unwavering.
“We want to develop sustainable agriculture that not only produces food but embraces the latest technology in terms of production,” he stated at the Sustainable Agriculture and Food Security Congress in 2022.
He further emphasised that agriculture can no longer be seen as a “poor man’s job with a ‘cangkul’ (hoe), hat and difficult life.
We have to change the perception to see agriculture as an industry, whereby land is an asset and technology is the process.” This reframing of agriculture as a technology-driven industry is central to attracting younger generations to the sector and ensuring its long-term viability.
The tangible manifestation of the Premier’s vision is evident in the substantial financial commitments made through the state budget.
The Sarawak Budget 2026 allocated RM73 million specifically for modernising agricultural practices through advanced technologies, including the development of the Sarawak Agrotechnology Park and Precision Farming Parks.
Within this allocation, RM5.9 million was designated for implementing Internet of Things (IoT) systems in agriculture and aquaculture, RM19.5 million for the Sarawak Agrotechnology Park in Semenggok and Tarat, and RM27.5 million for precision farming parks in Kabuloh, Sungai Sebiew, and Rampangi.
These investments signal a clear and sustained commitment to building the infrastructure and ecosystem necessary for smart farming to flourish.
The Premier has also recognised the critical role of research and education in sustaining this transformation.
“This is where we need experts to advise us on what to do, provide guidance on factors of production that we have an advantage in, and adopt AI (artificial intelligence) to determine the standard of our soils and input industry standards,” he stated.
The state government has introduced the Free Tertiary Education Scheme (FTES) with an allocation of RM250 million, irrespective of race, to ensure that the next generation is equipped with the knowledge and skills to lead the agricultural sector into the future.
“The transformation of the agricultural industry cannot happen without a change in management and the mindset of farmers.
Therefore, education is a key pillar in this long-term effort,” the Premier affirmed.
The Premier’s vision, therefore, is not merely about deploying technology but about cultivating a new generation of agricultural entrepreneurs who can harness that technology to build a prosperous and sustainable future for Sarawak.
Dynamics, Opportunities, and Imperatives
Understanding the global pepper market context is essential for appreciating the strategic importance of Sarawak’s modernisation efforts.
The international pepper trade is a multi-billion-dollar industry characterised by complex supply chains, price volatility, and intensifying competition among major producing nations.
Global pepper production in 2025 was estimated at approximately 520,000 tonnes, marginally lower than the previous year due to weather fluctuations in key producing regions.
The International Pepper Community projected a decline of approximately 4 per cent, or 22,000 tons, in global pepper production for 2025, attributed primarily to reduced output in the world’s largest export markets, Vietnam and Brazil.
Vietnam remains the dominant force in the global pepper trade, exporting 246,130 tons of pepper in 2025 and earning a record USD 1.66 billion, the highest export value ever recorded for the spice.
Remarkably, while Vietnam’s export volume dropped slightly by 1.5 per cent compared to 2024, the overall value surged by 26.3 per cent, signalling a sharp rise in global pepper prices driven by tightening supplies and robust demand.
Average export prices in 2025 stood at USD 6,443 per tonne for black pepper and USD 8,392 per tonne for white pepper.
The Vietnam Pepper and Spice Association reported that pepper and spice exports in 2025 exceeded USD 2.12 billion, with pepper alone accounting for USD 1.6 billion, representing a 26 per cent year-on-year increase.
These global market dynamics present both significant opportunities and formidable challenges for Sarawak’s pepper industry.
On the opportunity side, the rising global prices and sustained demand for premium pepper create favourable conditions for Sarawak to capture greater value from its production.
One tonne of premium pepper can fetch between RM25,000 and RM30,000, and with an average yield of 4.6 tonnes per hectare, the economic potential of expanded cultivation is substantial.
The Plantation and Commodities Ministry has proposed that Sarawak allocate between 5,000 and 10,000 hectares of land for large-scale pepper plantations, developed in partnership with smallholders and the private sector, to capitalise on this potential.
However, the challenges are equally pronounced.
The pepper industry globally is under growing pressure from increasingly stringent sustainability requirements imposed by major importing markets.
The European Union, the United States, South Korea, and Taiwan all require strict compliance with maximum residue limit (MRL) standards, forcing stricter control at the farm level.
As Le Thi Thuy Nhung, deputy commercial president at Simexco Dak Lak, observed, “The industry is under growing pressure from tighter sustainability requirements in international markets.” These requirements are no longer optional considerations but fundamental market conditions that determine access to premium buyers and export destinations.
The International Pepper Community has emphasised that in a time of geopolitical shifts, evolving trade dynamics, and rising sustainability expectations, the future of the pepper sector requires alignment and partnership anchored within the broader sustainable development agenda.
For Sarawak, this global context underscores the imperative of adopting both sustainable farming practices and advanced technologies that can ensure product quality, traceability, and compliance with international standards.
The state’s reputation as a producer of premium pepper provides a strong foundation, but maintaining and enhancing that reputation in an increasingly competitive and regulated global market requires systematic modernisation across the entire value chain.
The Current State of Sarawak’s Pepper Industry
The pepper industry in Sarawak operates at a critical juncture, balancing its rich heritage and premium market positioning against a backdrop of structural challenges that threaten its long-term viability.
Sarawak accounts for approximately 98 per cent of Malaysia’s total pepper production, making it the undisputed centre of the nation’s pepper industry.
The sector is overwhelmingly dominated by smallholder farmers, with an estimated 99 per cent of pepper operators falling into this category.
This smallholder-centric structure, while socially significant in terms of rural employment and income distribution, creates inherent vulnerabilities related to economies of scale, access to capital, and adoption of new technologies.
The economic potential of the Sarawak pepper industry is substantial, yet it remains significantly under-realised.
Industry estimates suggest that the sector could generate up to RM2.2 billion through value-added products, yet current annual generation stands at only approximately RM153 million.
This disparity highlights the considerable gap between raw commodity production and higher-value downstream processing and marketing.
The federal government, through the Malaysian Pepper Board, has implemented various support schemes to address these gaps.
Under the 12th Malaysia Plan, RM59.6 million was allocated for the New Pepper Planting Scheme (STLB) and the Mature Pepper Planting Scheme (STLM), providing farmers with essential inputs such as fertilisers, pesticides, and dolomite.
In the Serian district alone, 896 smallholders received STLB benefits worth RM4.47 million covering 113.9 hectares, while 1,622 smallholders benefited from STLM assistance totalling RM5.37 million across 259.4 hectares.
The government has also invested in critical infrastructure to support the industry.
Under the 12th Malaysia Plan, a total of 32 farm roads were constructed nationwide for RM10.3 million, improving access to farming areas, lowering operating costs, and strengthening supply chain efficiency.
Additionally, 721 hectares of new pepper cultivation areas were developed involving 5,202 smallholders, while 2,043 hectares of mature pepper farms received maintenance support, benefiting 11,675 smallholders.
The Premium Pepper Production Programme, with an allocation of RM3 million for the period 2022 to 2025, was established to encourage the cultivation of high-quality premium pepper for niche markets.
Despite these investments, the industry faces persistent challenges that smart farming and sustainable practices are specifically designed to address.
The reliance on traditional, labour-intensive cultivation methods has resulted in inconsistent yields and high production costs.
The average yield from conventional pepper farming stands at approximately two (2) kilogrammes of pepper berries per vine, a figure that smart farming technologies have demonstrated the potential to double.
Furthermore, the fragmentation of smallholder operations has made it difficult to achieve the scale necessary for efficient processing, quality control, and market access.
The Malaysian Pepper Board has responded by digitising the pepper grading and certification process, reducing processing time from two days to one working day, a change projected to save the industry RM2 million annually.
The completion of the long-delayed Pepper Research and Development Complex in Sarawak represents another critical milestone in addressing the industry’s structural challenges.
The project, which is almost 80 per cent complete, will serve as an important research and development centre for pepper development, providing a dedicated facility where issues related to pepper cultivation can be systematically studied and resolved.
As Plantation and Commodities Minister noted, “When these practices are adopted, they become standard operating procedures (SOPs) or disciplines that must be followed, and the construction of the complex is crucial for this purpose.”
The environmental and climate pressures facing pepper farmers add another layer of urgency to the modernisation agenda.
Unpredictable weather patterns, including early droughts and prolonged heavy rainfall, have become increasingly common and pose significant risks to crop health and productivity.
The 2026 pepper output is forecast to decline by around 10 per cent due to unfavourable weather conditions, underscoring the need for producers to prioritise quality over volume.
In response, the Malaysian Pepper Board has actively promoted Environmental, Social, and Governance (ESG) practices through MyGAP and MyOrganik certification.
As of the first quarter of 2025, 10 pepper smallholders in Ulu Katibas have successfully obtained MyGAP certification, and under the 13th Malaysia Plan, the target is for at least 20 per cent or 2,000 hectares of pepper farms to be MyGAP-certified by 2030.
Precision Agriculture Tools
The convergence of digital technology and agricultural science has produced a suite of precision agriculture tools that are fundamentally reshaping how pepper is cultivated, monitored, and marketed in Sarawak.
These tools address the specific pain points that have historically constrained smallholder productivity and profitability, offering data-driven solutions that are both accessible and effective.
The global smart agriculture market provides context for this transformation: the smart agriculture project market was valued at USD 15.94 billion in 2025 and is projected to grow to USD 17.10 billion in 2026, with a compound annual growth rate of 5.92 per cent, reaching USD 23.85 billion by 2032.
Similarly, the global precision agriculture systems market reached USD 6.32 billion in 2025 and is expected to grow to USD 19.45 billion by 2035.
Systematic reviews of digital agriculture adoption have consistently demonstrated that digital adoption increases farm productivity by approximately 15 to 30 per cent and enhances farmer income by 20 to 35 per cent, mainly through improved market connectivity and data-driven decision-making.
Safeguarding Quality and Authenticity Through Advanced Imaging
Among the most innovative technologies deployed in Sarawak’s pepper industry is AgriSmartEye, a sophisticated system developed by researchers at Curtin University Malaysia that combines hyperspectral imaging technologies with deep learning artificial neural networks (DLANN).
The research team, comprising Professor Agus Saptoro, Terence Chia Yi Kai, Professor Garenth Lim King Hann, and Associate Professor Chua Han Bing, designed AgriSmartEye as a rapid, reliable, and cost-effective screening tool to analyse the authenticity and geographical origins of ground black pepper.
The operational capabilities of AgriSmartEye are remarkable.
The system can detect not only adulterants but also the chemical properties and origin of black pepper samples with almost 100 per cent accuracy, delivering results in under three minutes.
This represents a dramatic improvement over existing methods, which are time-consuming, uneconomical, and ill-suited for rapid quality control in commercial settings.
As Professor Simon Leunig, Pro Vice-Chancellor, President and Chief Executive of Curtin Malaysia, explained, “The technology is fast with chemical analysis and geographical origin tracing taking under three minutes and is almost 100 per cent accurate.
With such a system, the local black pepper industry and regulatory bodies will be able to rapidly, accurately, and cost-effectively monitor product quality and ensure customer safety.”
The significance of AgriSmartEye for Sarawak’s pepper industry cannot be overstated.
As a premium product sold internationally, it is critically important to ensure that Sarawak pepper is sold as a pure, unadulterated product without added lower-grade pepper or bulk contaminants.
The presence of adulteration not only damages the reputation of Sarawak pepper but also erodes the price premium that farmers and exporters can command in international markets.
By providing a rapid and reliable means of verifying product authenticity and origin, AgriSmartEye serves as a guardian of the Sarawak pepper brand, protecting its premium status and ensuring that the value generated by high-quality production flows back to the farmers and communities who produce it.
The development of AgriSmartEye has been supported by a collaborative ecosystem involving Sarawak Digital Economy Corporation Berhad (SDEC), Malaysia Technology Development Corporation, and the Malaysian Pepper Board.
The system has garnered significant recognition, winning the Curtin University Curtinnovation Award in 2021 in the international category, gold medals at both the Innovation Technology Exposition 2022 and PECIPTA 2022, and an Innovation Excellence Award at the SDEC Technology Accelerator Demo Day 2024.
The system’s adaptability for other products prone to adulteration, such as coffee, cocoa, sago, and vanilla, further underscores its potential as a versatile tool for agricultural quality assurance.
For rural pepper farmers, the deployment of AgriSmartEye translates into tangible economic benefits.
By ensuring that their pepper meets the highest standards of purity and authenticity, farmers can access premium markets that offer better prices.
The system also reduces the risk of product rejection or price penalties associated with quality concerns, providing greater income stability and predictability.
As the technology becomes more widely deployed through Malaysian Pepper Board facilities and partner laboratories, it will become an integral part of the value chain that connects Sarawak’s smallholders to discerning international buyers.
Democratising Disease Diagnosis Through Mobile Technology
One of the most significant challenges facing smallholder pepper farmers is the timely and accurate identification of plant diseases and nutrient deficiencies.
In traditional farming systems, farmers must rely on their own experience or wait for periodic visits from extension officers to diagnose problems, by which time significant crop damage may have already occurred.
The LadaGo mobile application, developed by the Malaysian Pepper Board, addresses this challenge by putting professional diagnostic capabilities directly into the hands of farmers.
LadaGo enables farmers to take a photograph of a sick pepper plant using their smartphone, after which the application performs an automated diagnosis of diseases and nutrient deficiencies.
The application can also submit diagnostic reports directly to the Malaysian Pepper Board, creating a feedback loop that supports continuous improvement in crop health management.
Importantly, LadaGo and the Board’s other mobile applications can be used offline, making them suitable for rural areas with limited internet connectivity.
The impact of LadaGo on farm productivity is both direct and substantial.
By enabling early and accurate detection of issues such as white root disease, anthracnose, or aphid infestations, the application allows farmers to intervene promptly with appropriate treatments before these problems escalate into full-blown crises that can devastate entire harvests.
This early intervention capability translates directly into yield protection and crop loss prevention, which are fundamental drivers of farm revenue.
Moreover, LadaGo reduces the financial waste associated with misdiagnosis, where farmers might otherwise apply incorrect fertilisers or pesticides that are both costly and ineffective, or even harmful to the crop.
The integration of LadaGo into the Malaysian Pepper Board’s training programmes has been systematic.
The application is included as a core component of the Board’s in-situ training syllabus, equipping pepper growers with the skills to adapt to the latest technologies in pepper cultivation.
The Board’s Pepper Production Technology Course series, which in July 2025 trained 37 participants from the Simunjan and Bau districts, featured comprehensive instruction on the use of Dr.
LADA, NutriLada, and LadaGo, along with practical field demonstrations of organic fertiliser and compost production.
Dr.
LADA and NutriLada
Complementing LadaGo are two additional mobile applications that together form a comprehensive digital advisory ecosystem for pepper farmers: Dr.
LADA and NutriLada.
Dr.
LADA is a diagnostic application focused specifically on the early detection of diseases and pests affecting pepper vines.
The second version of the application, which was officially launched at an industry event in Serian, is capable of identifying six common pests and ten diseases, and it provides recommended treatments for each diagnosed condition.
The application’s sophistication is reflected in the recognition it has received, including a Silver Award in the Public Sector Innovation Awards category at the Malaysia Technology Expo 2020.
NutriLada addresses the complementary dimension of nutrient management, which is essential for optimal pepper vine growth and berry production.
The application provides comprehensive information on the essential nutrients required for pepper cultivation and helps pepper growers identify problems related to pepper nutrition.
Users of NutriLada can access detailed information on the importance of specific nutrients for pepper vine development, including nitrogen, phosphorus, potassium, magnesium, calcium, iron, manganese, and boron, all of which are covered under the application’s Nutrient Management module.
Together, Dr.
LADA and NutriLada function as a digital extension officer, providing farmers with expert guidance on best practices for field activities and nutrient application.
This guidance is grounded in scientific agronomy and tailored to the specific conditions of pepper cultivation in Sarawak.
The efficiency gains from using these applications are substantial: farmers can manage their crops more efficiently, applying the right nutrients at the right time and responding to pest and disease threats before they cause significant damage.
The 2025 Malaysian Pepper Board Appreciation Ceremony highlighted that these applications, along with LadaGo, help smallholders manage their crops more efficiently, a finding that is consistent with broader international research on the productivity impacts of mobile agricultural advisory technologies.
The international evidence base supports the efficacy of such digital advisory tools.
A systematic review of digitalisation in agriculture, covering studies published between 2020 and 2025, found that digital adoption increases farm productivity by approximately 15 to 30 per cent and enhances farmer income by 20 to 35 per cent.
Similarly, research on the RiceAdvice mobile application in Nigeria demonstrated that adoption significantly increased rice yields by an average of 1,907 kilogrammes per hectare compared to non-adopters, confirming the productivity-enhancing potential of mobile-based agronomic advisory tools.
These findings validate the strategic importance of the Malaysian Pepper Board’s investment in developing and deploying Dr.
LADA, NutriLada, and LadaGo to Sarawak’s pepper farming communities.
Drone Technology
The application of drone technology in Sarawak’s pepper industry represents a significant leap forward in the efficiency and precision of crop monitoring.
The Malaysian Pepper Board has adopted drone technology equipped with hyperspectral imaging capabilities to monitor crop health, detect diseases, and improve the accuracy of farm planning.
This technology enables a level of surveillance and early detection that would be impossible to achieve through traditional ground-based scouting, particularly across the often-challenging terrain of rural Sarawak.
Hyperspectral imaging on drones captures data across a broad spectrum of light wavelengths, many of which are invisible to the human eye.
This allows for the detailed assessment of crop health parameters such as chlorophyll levels, water stress, and early signs of pest or disease infestation long before visible symptoms appear.
The technology has earned the Malaysian Pepper Board a Gold Award at the Borneo International Technology Expo (INTEX) 2025 and a Silver Award in the Public Service Innovation Asia category at the Malaysia Technology Expo (MTE) 2025.
The operational and economic benefits of drone-based monitoring are multifaceted.
First, drones dramatically improve the efficiency of crop scouting, eliminating the need for slow, labour-intensive manual inspection of large farm areas.
This labour saving is particularly significant in an industry where labour shortages and the ageing of the farming population are pressing concerns.
Second, the precision of drone-based data enables targeted interventions rather than blanket applications.
When a drone identifies a specific area of crop stress, farmers can apply fertilisers, pesticides, or irrigation precisely where needed, reducing the total volume of inputs required and minimising environmental impact.
Third, the early detection capability of drone monitoring allows farmers to address emerging problems before they become widespread, protecting yields and reducing the economic impact of crop losses.
The integration of drone technology into the Malaysian Pepper Board’s operations reflects a broader commitment to technological modernisation.
As Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad noted, “These technologies enable more precise farm management and early intervention, which are crucial in enhancing productivity and sustainability.” The Board has also introduced mechanisation and Internet of Things-based white pepper processing machines, which received a Silver Award at MTE 2024, demonstrating a comprehensive approach to technological enhancement across the pepper value chain.
IoT-Based Sensors
The Internet of Things represents perhaps the most transformative technological frontier for Sarawak’s pepper industry, providing the real-time data infrastructure upon which all other precision agriculture tools depend.
IoT-based sensors deployed in pepper farms continuously measure a range of critical environmental and soil parameters, including soil moisture, pH levels, temperature, and other factors that directly influence crop health and productivity.
This data forms the foundation for data-driven decision-making that optimises irrigation, fertilisation, and overall farm management.
The Malaysian Pepper Board has established pilot projects combining IoT technology with fertigation systems at its research centres in Semengok and Sarikei.
These pilot projects have yielded remarkable results, demonstrating the potential to double yields from an average of 2 kilogrammes of pepper berries per vine to 4 kilogrammes per vine.
This doubling of yield represents a 100 per cent increase in revenue per vine for farmers, an improvement that would fundamentally transform the economic viability of pepper farming for smallholders.
The mechanism through which IoT sensors drive these productivity gains is straightforward yet powerful.
Soil moisture sensors, for instance, provide real-time data on the water status of the soil, enabling precise irrigation scheduling that delivers water only when and where it is needed.
This prevents both under-watering, which stresses plants and reduces yield, and over-watering, which wastes water, leaches nutrients from the soil, and can promote root diseases.
Similarly, sensors that monitor soil nutrient levels enable the precise application of fertilisers through fertigation systems, ensuring that pepper vines receive optimal nutrition without the waste and environmental harm associated with excessive fertiliser application.
The Sarawak government’s commitment to IoT in agriculture is reflected in its budgetary allocations.
The 2026 state budget allocated RM5.9 million specifically for implementing IoT systems in agriculture and aquaculture.
The Premier himself has highlighted the state government’s early adoption of smart farming technologies, noting that Sarawak had started implementing smart farming in Kuching by using IoT devices to monitor agricultural land and improve crop production.
“Smart farming technology could not only be a catalyst to increase quantity, quality and sustainability, but could also make the agricultural sector more cost-effective when information on the crops has been recorded in the system,” the Premier observed.
The global IoT-based smart agriculture market provides additional context for the significance of these developments.
The market was valued at USD 12.54 billion in 2025 and is anticipated to reach USD 23.92 billion by 2032, growing at a compound annual growth rate of 9.8 per cent.
Precision agriculture, which utilises GPS, drones, and IoT technologies, has been shown to improve yields by 20 to 30 per cent and cut input waste by 40 to 60 per cent in various agricultural contexts.
These international benchmarks validate the direction of Sarawak’s investments and suggest substantial untapped potential for further productivity gains as IoT adoption expands among pepper smallholders.
Sustainable Agriculture
While smart farming technologies provide the tools for efficiency and productivity enhancement, sustainable agricultural practices provide the foundation for long-term industry viability and market access.
The global trend toward stricter sustainability requirements in international markets has made it imperative for Sarawak’s pepper industry to embrace environmentally responsible farming methods.
The Malaysian Pepper Board has responded by actively promoting Environmental, Social, and Governance (ESG) practices through the MyGAP and MyOrganik certification schemes.
The MyGAP certification, which stands for Malaysian Good Agricultural Practices, provides a framework for farmers to implement sustainable practices that protect the environment, ensure food safety, and promote worker welfare.
As of the first quarter of 2025, 10 pepper smallholders in Ulu Katibas had successfully obtained MyGAP certification, and under the 13th Malaysia Plan, the Board is targeting at least 20 per cent, or 2,000 hectares, of pepper farms to be MyGAP-certified by 2030.
This certification is increasingly becoming a prerequisite for access to premium international markets, where buyers demand assurances that the products they purchase are produced in an environmentally and socially responsible manner.
The emphasis on sustainability extends beyond certification to encompass broader regenerative farming practices.
The Premier has urged stakeholders to establish a circular economy by converting agricultural waste into fertilisers and animal feeds, thereby closing nutrient loops and reducing the environmental footprint of farming operations.
This approach aligns with global best practices, as evidenced by major international spice companies, which has unveiled comprehensive sustainability strategies for spices, including pepper, setting tailored 2030 targets that address the unique agronomic, environmental, and social challenges of each crop.
The sustainability imperative is further reinforced by market dynamics.
The white pepper market, for instance, is projected to grow from USD 1.37 billion in 2026 to USD 1.72 billion by 2031 at a compound annual growth rate of 4.66 per cent.
This growth will increasingly be captured by producers who can demonstrate compliance with sustainability standards and provide traceability from farm to market.
The Malaysian Pepper Board’s Quality Control Laboratories in Kuching, Sibu, and Sarikei have achieved MS ISO/IEC 17025:2017 accreditation, ensuring that testing and analytical results for local pepper products are recognised at the international level.
This accreditation is critical in ensuring the credibility of Malaysia’s pepper quality and in strengthening buyer confidence, particularly in premium global markets.
Optimising Revenue
The ultimate measure of success for the transformation of Sarawak’s pepper industry is the extent to which it improves the livelihoods of rural smallholder farmers.
Optimising revenue requires a holistic approach that addresses not only production efficiency but also market access, value addition, and institutional support.
The government’s strategic investments and the deployment of precision agriculture tools are designed to impact every link in this value chain.
The direct impact of smart farming technologies on farm productivity is the most immediate pathway to revenue enhancement.
As documented, IoT-enabled fertigation has demonstrated the potential to double yields from 2 to 4 kilogrammes of pepper berries per vine.
This yield improvement, when combined with the input efficiency gains from precision agriculture, which can cut input waste by 40 to 60 per cent, creates a powerful economic equation for farmers.
The international evidence confirms that digital adoption enhances farmer income by 20 to 35 per cent, mainly through improved market connectivity and data-driven decision-making.
Beyond the farm gate, the accelerated grading and certification system implemented by the Malaysian Pepper Board reduces processing time from two days to one working day, improving trade flow, expediting export clearance, and reducing the risk of shipment delays, penalties, and contract cancellations.
This efficiency gain, projected to save the industry RM2 million annually, translates into more predictable and timely payments for farmers and reduces the working capital requirements of pepper traders and exporters.
The Premium Pepper Production Programme, with its RM3 million allocation for the period 2022 to 2025, specifically targets the cultivation of high-quality premium pepper for niche markets.
This programme recognises that not all pepper is equal in the marketplace and that farmers who invest in quality and sustainability can command significant price premiums.
The Sarawak Pepper Scale Up Project, a collaboration with Universiti Sains Malaysia, provides farmers with solar-powered white pepper drying houses, enabling them to produce higher-value white pepper products rather than selling raw peppercorns at lower prices.
The proposed development of large-scale pepper plantations of 5,000 to 10,000 hectares, developed in partnership between smallholders and the private sector, represents a strategic shift toward achieving the scale necessary for efficient processing and marketing.
Drawing lessons from the palm oil industry, where 73 per cent of production comes from large estates enabling RM120 billion in exports and nearly one million jobs, the pepper sector is recognising that consolidation and scale are essential for global competitiveness.
The Sarawak government’s broader agricultural development strategy supports these industry-specific initiatives.
The 2026 budget allocation of RM73 million for agricultural modernisation includes RM21.4 million for Agroparks and Aquaculture Parks, RM46 million for rice infrastructure and support, RM33 million for livestock development, and RM34.2 million for farm roads and collection, processing, and packaging centres.
These investments create an enabling environment in which pepper farmers can thrive, with improved infrastructure reducing transportation costs and post-harvest losses, and diversified agricultural activities providing alternative income streams and risk mitigation.
A New Chapter for Sarawak Pepper
The transformation of Sarawak’s pepper industry through sustainable practices and smart farming technologies is not a distant aspiration but a present reality.
From the hyperspectral imaging of AgriSmartEye safeguarding the authenticity of Sarawak’s premium pepper, to the mobile applications of LadaGo, Dr.
LADA, and NutriLada are empowering farmers with expert diagnostic capabilities, from drone-based monitoring and IoT sensor networks, optimising every aspect of cultivation. Technology is fundamentally reshaping the relationship between Sarawak’s rural farmers and their land.
Premier Sarawak Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg’s vision of a modernised, commercialised agricultural sector that embraces smart farming and global partnerships provides the strategic framework for this transformation.
His unwavering commitment to changing mindsets, investing in technology and infrastructure, and empowering the next generation of agricultural entrepreneurs has created the conditions in which innovation can flourish.
The Premier’s call for farmers to see themselves not as struggling peasants but as farm managers operating business enterprises captures the essence of the cultural shift that must accompany technological change.
The global pepper market, with its rising prices, growing demand for sustainably produced spices, and increasingly stringent quality requirements, presents both the opportunity and the imperative for Sarawak to modernise its pepper industry.
The state’s reputation as a producer of premium pepper, combined with its investments in quality assurance technologies like AgriSmartEye and its promotion of MyGAP certification, positions it to capture a growing share of the premium market segment.
For the rural smallholder farmers who form the backbone of Sarawak’s pepper industry, the path to optimising effort and revenue is increasingly clear.
Embrace the training and extension programmes offered by the Malaysian Pepper Board.
Download and use the free mobile applications that put expert knowledge in your pocket.
Participate in cooperative arrangements that enable shared access to drone services and IoT infrastructure.
Pursue MyGAP certification to access premium markets.
And above all, adopt the mindset of a business operator who views the farm as an enterprise and technology as the tool for success.
The journey of transformation is far from complete.
Challenges remain in scaling these technologies across Sarawak’s dispersed farming communities, in bridging the digital divide that limits access in the most remote areas, and in ensuring that the benefits of modernisation flow equitably to all farmers regardless of their scale of operation.
Yet the foundations have been laid, the early results are promising, and the direction of travel is unmistakable.
Sarawak pepper, the King of Spices, is being equipped with the tools of a new era, ensuring that its reign continues and that the rural communities who cultivate it share fully in its prosperity.
References
360iResearch. (2026). Smart agriculture project market by deployment mode, component, farm size, agriculture type, technology, connectivity, application – Global forecast 2026-2032. https://www.giiresearch.com/report/ires1916848-smart-agriculture-project-market-by-deployment.html
Bernama. (2025, November 19). Sarawak Pepper R&D Complex to be completed following new allocation from MOF. https://bernama.com/en/general/news.php?id=2492552
Commodities Control. (2025, October 31). Arrival pressure pulls domestic pepper prices down after week-long pause. https://old.commoditiescontrol.com/eagritrader/common/newsdetail.php
Curtin University Malaysia. (2021, November 2). Annual Curtinnovation Awards 2021 showcase Curtin’s leading research. https://news.curtin.edu.my/news/annual-curtinnovation-awards-2021-showcase-curtins-leading-research/
Curtin University Malaysia. (2024, May 27). Curtin Malaysia team wins Innovation Excellence Award for groundbreaking AgriSmartEye system. https://news.curtin.edu.my/news/curtin-malaysia-team-wins-innovation-excellence-award-for-groundbreaking-agrismarteye-system/
FNB News. (2026, January 10). ofi unveils ‘Spice Maps’ — first comprehensive sustainability strategy for spices. https://fnbnews.com
Frontiers. (2025). Challenges and opportunities in smallholder agriculture digitization in South Africa. https://www.frontiersin.org
Global Growth Insights. (2025). 2035 年精准农业系统市场规模和需求分析. https://www.globalgrowthinsights.com
International Pepper Community. (2026, March 3). Global pepper cooperation, resilient futures. https://www.ipcnet.org/pepper-news/page/6/?id=1432
Karman, T., Rahmawati, & Humam, F. (2025). Digitalization of agriculture and its impact on productivity, market access, and the digital divide among smallholder farmers in developing countries: A systematic review using the PRISMA method. Journal of Agri Socio Economics and Business, 7(02). https://ejournal.unib.ac.id/JASEB/article/view/45770
Koh Santepheap Daily. (2025, January 23). Pepper prices may rise in 2025: Pepper growers will benefit. https://english.kohsantepheapdaily.com.kh/article/2034492
Malaysian Pepper Board. (2021, December). Malaysian pepper export increased by 22 per cent from last year. https://grading.mpb.gov.my/mpb/index.php/ms/keratan-akhbar/610-malaysian-pepper-export-increased-by-22-per-cent-from-last-year
Malaysian Pepper Board. (2025). Kursus Teknologi Pengeluaran Lada (KTPL) siri 2 2025. https://www.mpb.gov.my
Malaysian Pepper Board. (2026, March 27). Latihan In-situ MPB Sibu. https://grading.mpb.gov.my
MarketMinute. (2026). Capsicum market size to reach USD 30.4 billion by 2030. https://kvoa.marketminute.com
New Straits Times. (2024, August 21). Abang Johari: Crucial for Malaysia to become net food exporter. https://pre-www.nst.com.my/news/nation/2024/08/1094837/abang-johari-crucial-malaysia-become-net-food-exporter
New Straits Times. (2025, November 20). Plantation proposal could turn Sarawak into major pepper producer. https://www.nst.com.my/news/nation/2025/11/1318795/plantation-proposal-could-turn-sarawak-major-pepper-producer
NutriLada. (2024). NutriLada by Malaysian Pepper Board. https://nutrilada.appstor.io
PBB Sarawak. (2023, September 25). Sarawak has a potential to make a significant contribution to global food demand. http://pbb.org.my
QY Research. (2026). Global IoT-based smart agriculture market research report 2026. https://www.qyresearch.com
RTM. (2025, November 19). Pekebun kecil lada di Sarawak diberi keutamaan. https://berita.rtm.gov.my
Sarawak Tribune. (2022, November 25). Big wins for Curtin researchers. https://www.sarawaktribune.com/big-wins-for-curtin-researchers/
Sarawak Tribune. (2025, December 19). Quality upgrades ensure efficiency, credibility in pepper industry. https://www.sarawaktribune.com/quality-upgrades-ensure-efficiency-credibility-in-pepper-industry/
The Malaysian Reserve. (2019, July 9). Agricultural sector in Sarawak poised for better outcomes through digital changes, says expert. https://themalaysianreserve.com
The Star. (2022, September 21). Sarawak to use digital technology in improving agriculture sector. https://www.thestar.com.my/news/nation/2022/09/21/sarawak-to-use-digital-technology-in-improving-agriculture-sector
The Vibes. (2025, November 24). Sarawak unveils RM12.91 billion 2026 state budget with focus on agriculture, tourism, carbon levy. https://www.thevibes.com/articles/news/116002/sarawak-unveils-rm12.91-billion-2026-state-budget-with-focus-on-agriculture-tourism-carbon-levy
TVS. (2026, January 14). Basmi kemiskinan keutamaan kerajaan pimpinan Abang Johari. https://www.tvsarawak.my/2026/01/14/basmi-kemiskinan-keutamaan-kerajaan-pimpinan-abang-johari/
Utusan Sarawak. (2025, November 24). DUN: Sarawak perkukuh transformasi pertanian melalui Bajet 2026. https://utusansarawak.com.my/dun-sarawak-perkukuh-transformasi-pertanian-melalui-bajet-2026/
Vietnam News. (2026, January 16). Pepper industry needs to better adapt to stringent export requirements: experts. https://bizhub.vietnamnews.vn/pepper-industry-needs-to-better-adapt-to-stringent-export-requirements-experts-post395744.html
VnExpress International. (2025, November 11). Pepper exports rise by 25%. https://e.vnexpress.net/news/business/economy/pepper-exports-rise-by-25-4962699.html
WTO Center Vietnam. (2026, January 26). Viet Nam sets export record for pepper as UAE, Thailand, Egypt ramp up purchases. https://www.wtocenter.vn/tin-tuc/29516-viet-nam-sets-export-record-for-pepper-as-uae-thailand-egypt-ramp-up-purchases
