5 Mar 2019 (The Edge Markets MY) KUALA LUMPUR : The Ministry of Primary Industries is fully confident of achieving the Malaysian Sustainable Palm Oil (MSPO) certification by January 1, 2020.

Deputy Primary Industries Minister Datuk Seri Shamsul Iskandar Mohd Akin said as at February 2019, some 30 percent out of 5.8 million hectares had been certified.

He said there was good progress among the organised group such as those under the Federal Land Development Authority and Federal Land Consolidation and Rehabilitation Authority towards the MSPO certification.

On the other hand, he said compliance among smallholders in the disorganised group, who made up about 12 percent of estate owners in the country, remained a concern, hence, continuous effort was needed to get them certified.

“We have to do it whether we like it or not. The entire industries that relate to palm oil must be on the ground to ensure the promises to consumers are fulfilled,” he told Bernama at a luncheon organised by Gamalux Oils Sdn Bhd in conjunction with the Palm and Lauric Oils Price Outlook Conference & Exhibition here today.

The Government had, in May 2017, made it mandatory for all plantation companies and smallholders to obtain the MSPO certification by December 2019.

Shamsul Iskandar said the MSPO adoption was one of the ways to counter the sustainability issue raised by the European Union (EU), retain the market and show Malaysia’s commitment towards the United Nation’s sustainability development goals.

Continuous engagement with industry players, particularly those from the EU is required to better communicate Malaysian best practices, he added.

As Malaysia is seen becoming Indonesia’s competitor as the world's biggest palm oil producer, he said there was a need to differentiate country’s palm oil products by showing the market that they were of higher quality.

On efforts to increase palm oil exports, he said the Government would continue to find new markets, as well increase its export volume to existing markets such as China, EU countries, Iran, Turkey and Pakistan.