Malaysian Sustainable Palm Oil (MSPO) Certification Progress for Independent Smallholders in Malaysia

Abstract

Oil palm sector is one of the major contributors to the Gross Domestic Product (GDP) in Malaysia. In 2019, with oil palm area of 5.90 million hectares, exports of oil palm have contributed RM64.84 billion to the country's income. Indirectly, it helps the economic growth and socioeconomic of independent smallholders which occupy over 16% of total oil palm planted area in Malaysia. Despite the significant contribution to the economy, Malaysian palm oil industries has been heavily pressurized by the western communities for causing environmental problems such as deforestation and loss of biodiversity. Hence, the mandatory implementation of Malaysian Sustainable Palm Oil (MSPO) starting 1st January 2020 is important for the palm oil industries to ensure their commitment towards sustainability, including smallholders. Malaysian Palm Oil Board (MPOB), a government agency has been tasked to assist independent smallholders in implementing MSPO certification. As of 31st May 2020, 24.3% of independent smallholders with 239,692.34 hectares of oil palm areas have been certified with MSPO. Therefore, implementation of MSPO among smallholders provides competitive advantages for Malaysian palm oil and promotes Malaysian sustainable product worldwide.