MSPO 2.0 Reinforces Malaysia's Leadership In Sustainable Palm Oil Production -- MPOC

By Danni Haizal Danial Donald

KUALA LUMPUR, Jan 3 (Bernama) -- The implementation of Malaysian Sustainable Palm Oil (MSPO) Standard MS2530:2022 (MSPO 2.0) reinforces Malaysia’s leadership in sustainable palm oil production and strengthens its position in the global markets, said the Malaysian Palm Oil Council (MPOC).

The MSPO 2.0 officially comes into effect on Jan 1, 2025, and introduces stricter guidelines for sustainability, traceability, and ethical practices in palm oil production.

MPOC chief executive officer Belvinder Kaur Sron said implementing the enhanced MSPO 2.0 would enable the council to more effectively promote the sustainability and quality of Malaysian palm oil, bolstering its reputation internationally.

“MSPO 2.0 introduces stricter measures to prevent deforestation, safeguard high conservation value areas, and address key environmental concerns. By incorporating smallholders into sustainable supply chains and improving traceability, the standard creates a more inclusive and resilient framework,” she told Bernama today.

Belvinder noted that these improvements not only enhance sustainability but also market access, as stakeholders increasingly demand products that meet rigorous environmental and social standards.

“MSPO 2.0 aligns seamlessly with international sustainability benchmarks, including the EU Deforestation Regulation (EUDR) and the United Nations Sustainable Development Goals (UNSDGs).

“Its enhanced traceability mechanisms and environmental, social and governance (ESG)-focused principles ensure that Malaysian palm oil meets the expectations of environmentally conscious consumers and regulators worldwide,” she said.

Belvinder said this would not only preserve existing market access but also strengthen Malaysia’s ability to expand into new markets, showcasing its commitment to sustainability and quality.

“By ensuring compliance with global standards and addressing consumer concerns around sustainability, MSP0 2.0 strengthens Malaysia’s market position and facilitates access to premium markets such as the European Union (EU) and North America,” she added.

According to Belvinder, the enhanced certification enables the palm oil industry to make a meaningful contribution to both national and global sustainability objectives by tackling issues such as deforestation, biodiversity conservation, and labour rights,

“The strengthened standards also support MPOC’s efforts to position Malaysian palm oil as a globally recognised sustainable and high-quality product, facilitating greater market access and driving long-term growth for the industry,” she said.

Meanwhile, National Association of Smallholders Malaysia (NASH) president Adzmi Hassan is hoping that the implementation of MSPO 2.0 will further strengthen the price of palm oil and provide some premium to the commodity.

He also anticipates that the government, through the Malaysian Palm Oil Board (MPOB), will continue supporting smallholders in obtaining MSPO 2.0.

“Currently, the government is supporting smallholders for MSPO 1.0, so I hope (the government) through MPOB will continue this initiative,” he said.

Adzmi opined that increasing palm oil fresh fruit bunches (FFB) prices to RM1,100-RM1,200 per tonne would motivate smallholders to produce more sustainable palm oil going forward, aligning with the MSPO 2.0 standard.

According to the Ministry of Plantations and Commodities (MPIC), approximately 4.94 million hectares or 87.4 per cent, of palm oil plantations in Malaysia, and 407 of the 446 palm oil mills have been certified under the MSPO standard as of April 2024.

Its minister, Datuk Seri Johari Abdul Ghani, said 151,152 smallholders, covering 542,215 hectares or 66 per cent, have also obtained certification during the same period.

-- BERNAMA