How can Malaysia meet international demand for sustainably produced palm oil?

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Malaysia can meet international demand for sustainably produced palm oil by raising MSPO certification among smallholders and enforcing environmental compliance at processing factories.
Malaysia’s Ministry of Primary Industries (MPI) has urged oil palm smallholders to obtain Malaysian Sustainable Palm Oil (MSPO) certification, noting that only 11% of smallholders nationwide currently hold the certificate. MPI minister Teresa Kok said the RM40,000 cost for MSPO certification is borne by the government, and smallholders can participate by providing the necessary documents to auditors. She linked the push to international customer demand from developed nations for palm oil produced in a sustainable and environmentally friendly way.
Only 11% of smallholders are MSPO certified, despite Malaysia’s large oil palm area
MPI’s latest figures show Malaysia has about 5.8 million hectares (ha) under oil palm, with 40% owned by smallholders. Yet just 11% of oil palm smallholders have MSPO certification, a low level MPI described as very small and worrying. At the national level, 62.4% of oil palm plantations, or about 3.64 million ha, have already obtained MSPO certification.
Government covers MSPO certification costs, and smallholders are told to prepare documents
Teresa Kok said the RM40,000 fee to obtain MSPO certification is borne by the government. She urged smallholders to seize the opportunity to complete certification by supplying the documents required by auditors. The emphasis is on using the certification process to expand sustainable production coverage beyond the current 11% among smallholders.
Customers from developed nations want sustainability and environmental friendliness
Kok said Malaysia, as a palm oil producing country, must meet the expectations of international customers, including those in developed nations, who want palm oil produced through sustainable and environmentally friendly methods. While demand for palm oil remains high, she said buyers are seeking more sustainable production practices. In that framing, producers must align with customer requirements rather than rely on demand alone.
Processing factories face DOE air and water pollution guidelines, with shutdowns possible
MPI also called on owners of palm oil processing factories to follow guidelines set by the Department of Environment (DOE), particularly those related to air and water pollution. Kok said the ministry would not hesitate to shut down factories that fail to comply with DOE guidelines, adding that factories still have 20 months to meet the requirements. The message connects environmental compliance at processing sites to protecting the image of Malaysia’s national oil palm industry.

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How can Malaysia meet international demand for sustainably produced palm oil?

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