The Malaysian palm oil industry faces growing scrutiny over its environmental footprint, social equity, and economic sustainability. This study develops and applies a novel integration framework that combines life cycle methodologies with decision-making tools—applying a Life Cycle Sustainability Assessment framework that integrates Environmental Life Cycle Assessment, Life Cycle Costing, and Social Life Cycle Assessment with the Analytic Hierarchy Process—to evaluate two upstream palm oil production facilities located in Perak and Pahang. By adopting a site-specific, International Organization for Standardization-aligned methodology, the study quantifies key sustainability trade-offs across production processes. To address the limitations of siloed assessment, AHP was incorporated to translate multi-dimensional Life Cycle Sustainability Assessment results into policy priorities, informed by stakeholder input from government, industry, Non-government organisations, and academia. Findings reveal contrasting sustainability profiles: Mill A demonstrated stronger social performance in worker welfare and community engagement, while Mill B excelled in environmental and economic efficiency. A composite scoring system and sensitivity analysis validated the prioritization of Policy C—a balanced strategy integrating all three sustainability pillars. To bridge empirical assessment and governance design, a Governance Integration Logic Model was developed, structuring the translation of LCSA– Analytic Hierarchical Process results into actionable policy instruments and institutional pathways. Practically, the framework supports evidence-based policy design for improving environmental, economic, and social performance in Malaysia’s palm oil production. This research contributes to the theoretical development of integrated sustainability frameworks by combining empirical life-cycle case analysis with multi-criteria decision techniques. The research also contributes to sustainability science by offering a replicable framework that integrates quantitative rigor with participatory decision-making. It delivers policy-relevant insights for enhancing Malaysian Sustainable Palm Oil certification, improving social safeguards, and aligning sectoral reforms with the Sustainable Development Goals and Paris Agreement. The study concludes with a four-pillar governance strategy encompassing certification reform, stakeholder inclusion, innovation hubs, and digital monitoring—positioning Malaysia as a leader in sustainable agro-industrial governance.
Nur Azman Bin Mohd Aminudin (Sat,) studied this question.