The Malaysian Palm Oil Board (MPOB) has set a target of more than 90% of independent smallholders (ISH) to achieve Malaysian Sustainable Palm Oil (MSPO) certification by the end of next year, The Star reported.
According to MPOB director general Dr Ahmad Parveez Ghulam Kadir, 76.9% of the 210,891 independent oil palm smallholders licensed with the board are already certified under the MSPO standard.
MPOB initiatives, including financial and technical assistance, helped boost the compliance rate, Dr Kadir was quoted as saying in the 1 November report in response to queries by news agency Bernama.
The organisation also held awareness campaigns on the importance of sustainability through targeted training programmes and by the implementation of the Sawit Intelligent Management System (Sims), he said.
“The Sims aims to improve the monitoring of palm oil transactions, ensuring greater transparency and traceability throughout the supply chain,” he added.
MPOB was also committed to supporting ISH by providing full funding for the MSPO certification audit process, he said.
“This support includes training and supplying essential inputs, such as personal protective equipment (PPE) and shelves for storing herbicides and pesticides.
“By alleviating these financial burdens, the allocation encourages ISH to pursue sustainable palm oil production,” he added.
The MPSO certificate ensures that plantation products, especially palm oil, are produced through sustainable methods, using processes that are environment-friendly and safe, complying with good agricultural practices.
Benefits from complying with such standards would enable Malaysian palm oil to be more marketable overseas, especially in developed markets such as the European Union (EU), The Star wrote.
As the third largest importer of palm oil after India and China, the EU is an important market for Malaysia, importing 2.7M tonnes of palm oil and palm oil products last year, according to the report.
Against this backdrop, Malaysian Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim had allocated RM50M (US$11.4M) in the 2025 budget for MSPO certification and RM15M (US$3.4M) towards countering anti-palm oil campaigns, the report said.