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12 Kochi University Review No. 102have moved into East Malaysia in places such as Sabah and Sarawak (see Figure 1), andfurther into Indonesia or other countries to develop new plantations in search fo....

12 Kochi University Review No. 102have moved into East Malaysia in places such as Sabah and Sarawak (see Figure 1), andfurther into Indonesia or other countries to develop new plantations in search for vasttracts of land and abundant cheap labor force. As shown in Table 3, this has resultedin Malaysia falling back to second place in world palm oil production, recently givingway to Indonesia. Yet, it is estimated that Malaysian capital accounts for about 30% ofplantation development in Indonesia, which means that cross-border plantation developmenthas become quite advanced14.3. Agribusiness-led Development and Its ContradictionsThus, development of the palm oil industry in Malaysia has brought about massivegrowth opportunities for agribusinesses. However, this agribusiness-led developmenthas caused socio-political impacts and contradictions in Malaysia and in other countries.Most notably, upstream oil palm plantation development has had serious impacts onlocal people, communities, and environment in and around the development location.This is classified broadly into two types; impacts of plantation expansion and impacts incourse of plantation management15.The former impacts of the plantation development process include large-scaledeforestation and related land disputes. Commodity characteristics and increased globaldemand lead to a vast oil palm monoculture, and tropical forest is a suitable target fordevelopment. This causes irreversible decline in the tropical forest ecosystem and biodiversity.It is estimated that about 33% of forest was converted into oil palm plantationsthroughout Malaysia, and in Sarawak, the current national front of oil palm development(see Figure 1&2), emission of greenhouse gases leading to climate change as well asdeforestation is further exacerbated due to clearing of peatland forest16.In addition, this environmental destruction occurs in combination with many landdisputes between local people and developers or governments. In Sarawak, nativecustomary lands which indigenous people have historically used for planting andhunting are appropriated at the cost of oil palm plantations without any discussion orprior consent, and traditional life is drastically damaged due to destruction of plantingareas or contamination of rivers without any compensation. Protests, demonstrations andblockages have been carried out repeatedly by local people against land appropriationand destructive development. According to the report by Forest Peoples Programmeand Sawit Watch, there were about 40 lawsuits related to palm oil disputes by nativeplaintiffs from 1997 to 2007 (Figure 4). And, based on a comprehensive analysis of theseconflicts, urgent solutions such as respect of native customary lands, open discussion and