The Malaysian Palm Oil Certification Council ( MPOCC) views with concern the statement by the Sabah Forestry Department Director, YBhg Datuk Sam Mannan on Sabah State’s approach in adopting RSPO certification, which was published by The Edge Financial Daily on 6 November 2017. In addition, the article mentions that the State Government will not bow to federal pressure to follow Malaysian Sustainable Palm Oil (MSPO) certification.
2. The Roundtable on Sustainable Palm Oil (RSPO) is a business to business arrangement and voluntary in nature. RSPO certification has been implemented since 2004.
3. MSPO is a national certification scheme developed taking into account domestic laws and regulations, and best practices relating to sustainable production of palm oil. It was initially implemented on a voluntary basis since January 2015. In this context, taking into account the growing demand for certified sustainable palm oil (CSPO) in major importing markets, the Government on 18 May 2017 announced that MSPO certification will be made mandatory by December 2019. Implementation of MSPO certification will further enhance the image of the Malaysian palm oil industry, improve competitiveness, enhance the welfare of the growers, particularly the smallholders, and form the basis for the branding of Malaysian palm oil.
4. To facilitate the implementation of MSPO certification, the Government had established the Malaysian Palm Oil Certification Council (MPOCC) in 2015 to develop and operate the MSPO Certification Scheme. In addition, the Government will provide incentives to defray the cost of certification. In the case of smallholders, the incentive covers 100% of the cost of certification. It is estimated that close to RM150 million will be provided as incentives towards ensuring MSPO certification by oil palm plantations and smallholders, and processing facilities by December 2019.
5. The Government will also continue to promote MSPO in major markets to ensure its recognition and facilitate market accessibility. This will address the demand for certified sustainable palm oil (CSPO) in major markets, including the European Union (EU) and United States.
6. MPOCC will continue to engage all the relevant stakeholders in the implementation of MSPO certification, taking into account that MSPO is the national standard for the palm oil industry. Currently, 268,600 hectares have been MSPO certified, with a set target to certify 570,000 ha by the end of December 2017.
Malaysian Palm Oil Certification Council
6 November 2017