Kuala lumpur: The Malaysian Palm Oil Board (MPOB) is ambitiously targeting more than 90 percent of independent smallholders to achieve Malaysian Sustainable Palm Oil (MSPO) certification by the end of next year. MPOB Director-General Datuk Dr Ahmad Parveez Ghulam Kadir expressed his optimism, noting that 76.9 percent of the total 210,891 independent oil palm smallholders licensed with the board are already certified under the MSPO standard.
According to BERNAMA News Agency, the significant compliance rate is attributed to MPOB’s initiatives, which include providing continuous financial and technical assistance. These efforts have laid a strong foundation for further compliance. In response to queries, Ahmad Parveez highlighted MPOB’s commitment to sustainability through awareness campaigns and targeted training programs, alongside implementing the Sawit Intelligent Management System (SIMS) for better monitoring of palm oil transactions.
The MPOB has also shown its dedication by offering full funding for the
MSPO certification audit process, which includes training and essential supplies like personal protective equipment and storage solutions for herbicides and pesticides. By alleviating these financial burdens, MPOB encourages independent smallholders to pursue sustainable palm oil production, supporting environmental conservation and economic stability within the industry.
The MSPO certification ensures that palm oil is produced sustainably, with processes that are environmentally friendly and safe, adhering to good agricultural practices. This compliance enhances the marketability of Malaysian palm oil, particularly in developed markets such as the European Union (EU), which demands adherence to such standards due to concerns over deforestation and wildlife destruction.
Despite these challenges, the EU remains a crucial market for Malaysia, being the third-largest importer of palm oil after India and China, with 2.7 million tonnes imported last year. To counter international misunderstandings about palm oil
, especially from the EU, the Malaysian government has allocated RM65 million in Budget 2025, as announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim. Of this, RM50 million is earmarked for MSPO certification, and RM15 million for countering anti-palm oil campaigns.
One such campaign, the European Union Deforestation Regulation (EUDR), poses a non-tariff barrier that discriminates against Malaysia’s major commodities by raising compliance costs and restricting market access. Ahmad Parveez noted that achieving sustainable practices could impose additional costs, particularly impacting independent smallholders with limited resources.
