Malaysia makes MSPO certification Mandatory for all Palm oil Plantations by 2019
Posted on : 06 Mar, 2017
Malaysia – the world’s second largest palm oil producer – has made its Malaysian Sustainable Palm Oil (MSPO) certification mandatory for all palm oil plantations by December 2019. The new move is largely seen to make the country’s palm oil industry more attractive to international buyers – especially from Europe that are very particular about procuring only certified sustainable palm oil in compliance with global standards.
Started in 2015, MSPO certification was given only on voluntary basis until now. As of December 2016, Malaysia had a total of 222,778ha of palm oil plantations certified by MSPO.
The MSPO certification will be carried out in 3 phases. For plantations that already have the Roundtable on Sustainable Palm Oil (RSPO) certification, the deadline for MSPO will be Dec 31, 2018. The plantations that are not RSPO certified, need to procure their MSPO certification by June 30, 2019. The third phase will include smallholders that have to get their certification done by Dec 31, 2019.
The MSPO will be helpful for smallholders – for whom RSPO certification is very difficult to get.
The European Union is the second biggest market for Malaysian palm oil. In 2016, Malaysia’s palm oil and palm-based product exports to EU earned them RM10.30 billion, an increase of 4% from RM9.89 billion in 2015.
Malaysia’s Plantation Industries and Commodities Ministry will be getting the financial incentives ready this June to help the industry with the certification process.
More about Malaysia’s palm oil market at CMT’s 9th ASIA Sustainable Oil Palm Summit held on August 1-2, in Kuala Lumpur.
For more information, contact Ms. Hafizah at email@example.com or call +65 6346 9218.