IN A recent announcement, Deputy Prime Minister Datuk Seri Fadillah Yusof announced that Malaysia is on a positive trajectory to secure recognition from the European Union (EU) for its Malaysian Sustainable Palm Oil (MSPO) certification scheme.
The EU acknowledgment which is expected to come by June this year marks a crucial move forward in validating Malaysia’s commitment to sustainable palm oil practices.
Commenting on the EU’s potential recognition of MSPO, Datametrics Research and Information Sdn Bhd (DARE) managing director Pankaj Kumar noted that such development will prevent the marginalisation of smallholders with locally produced commodity products exempted from additional audits.
“Recognition of the MSPO as a credible certification scheme not only ensures the inclusion of smallholders but it also opens doors for locally produced commodities to be showcased on a broader international stage,” head honcho of the think tank committed to research and advocacy of key sectors critical to the Malaysian economy further justified.
“It has the potential to bolster our Malaysian economy by expanding market reach and promoting sustainable practices.”
For decades, palm oil has been a cornerstone of economic growth, contributing significantly to the GDP (gross domestic product) of producing countries and providing employment opportunities across the value chain.
“Palm oil’s versatility and efficiency in production have established it as a crucial element in a wide range of sectors, from biofuels and industrial manufacturing to cosmetics and beyond,” envisages Pankaj.
“Embracing sustainable practices in palm oil production is not just an environmental imperative but a strategic economic move as well.”
He further expects the potential recognition as positioning the Malaysian palm oil industry to meet global demands more effectively while promoting economic resilience and ensuring equitable distribution of benefits.
“This approach demonstrates that with proper regulation and sustainable practices, we can address critical issues like the deterioration of agricultural lands while bolstering economic stability and growth,” added Pankaj.
DARE remains optimistic about the positive impact of these developments, anticipating that the EU’s recognition of MSPO will not only elevate Malaysia’s standing in the global palm oil industry but also foster economic growth and sustainability. – March 13, 2024
