Prioritizing Sustainability Performance Indicators for Independent Oil Palm Smallholders Using Analytic Hierarchy Process (AHP)

Abstract The palm oil industry is a central sector of Malaysia’s economic growth, but is increasingly targeted as a cause of environmental and social hazards. Smallholders, a leading producer of palm oil, face numerous challenges due to a lack of access to resources, expertise, and markets, resulting in an inability to adopt sustainable operations. This paper employs the Analytic Hierarchy Process (AHP) to select and rank sustainability performance indicators relevant to smallholders, considering environmental, social, and economic aspects. The views of experts were collected through practitioners and advisors who directly interacted with smallholders. The analysis showed that fertiliser management was the top environmental concern. Social well-being in workplace safety has become the most significant social issue, indicating constant threats to labourers in smallholder plantations. Land ownership security topped the economic factors critical to facilitating investment and involvement in certification schemes. The result shows that smallholders’ sustainability priorities represent practical realities, not abstract ideals. It is the call of policymakers and support institutions to align the training, resources, and regulatory frameworks with these priorities, so that sustainability outcomes can be more effective. Although the study has a limited geographic scope, its systematic methodology will serve as a beneficial starting point for conducting similar studies in different areas. Further studies should cover broader areas and include more indicators to understand the sustainability needs of smallholders better.