New incentives to spur adoption of MSPO certification announced

From left: Datuk M.Nagarajan, Chairman of Malaysian Palm Oil Certification Council (MPOCC), Datuk Datu Nasrun Datu Mansur, Deputy Minister of Plantation Industries and Commodities, Datuk Seri Mah Siew Keong, Minister of Plantation Industries and Commodities, and Datuk K.Yogeesvaran, secretary-general of Plantation Industries and Commodities Ministry at the dialogue session with representatives of oil palm plantation companies in Putrajaya regarding MSPO certification.

PUTRAJAYA: Minister of Plantation Industries and Commodities Datuk Seri Mah Siew Keong revealed that the government has agreed to provide a financial incentive to facilitate and help reduce the cost of obtaining Malaysian Sustainable Palm Oil (MSPO) certification.

According to a press release, the agreed extra incentive is: 70 per cent incentive for the audit cost for estates with planted area above 40.46 ha to 1,000 hectares; 30 per cent incentive for the audit cost for estates above 1,001 hectares; and 30 per cent incentive for audit cost for processing facilities including mills, refineries and crushers.

Details on the incentives are available at www.mpob.gov.my

The announcement came after a dialogue session between the ministry with representatives of oil palm plantation companies on Sept 27 to get feedback and views on MSPO.

The session was attended by more than 120 industry players representing small and medium-sized oil palm estates in Malaysia. The industry players were briefed on the main features of the MSPO Certification Scheme, including standards and requirements, as well as certification procedures.


At the briefing, while some concerns were raised, the participants generally pledged their support for the efforts undertaken by the ministry and the Malaysian Palm Oil Certification Council (MPOCC) to facilitate the implementation of MSPO certification.

As of August 2017, the total planted area that has been certified under the MSPO Certification Scheme is 245,381hectares. The certified area includes 237,509 hectares under plantation companies, 3,868 hectares under organised smallholders, and 4,004 hectares under independent smallholders. In addition, a total of 22 mills have also been MSPO-certified.

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