Lost harvests for Sustainable
Food and Fuel in Malaysia
Meanwhile, Malaysia as a producer and exporter of palm-based food and biofuels is facing a similar challenge in managing agricultural land to support its industries.
Related commentary: Failure of EU European Seed oils in Food vs Fuel Dilemma
The EU Delegation to Malaysia has recently "acknowledged MSPO certification as a credible sustainability scheme with a high standard digital traceability system that can facilitate operators’ compliance with EUDR."
This acknowledgement must surely be gratifying for Malaysia which has made a commitment to protect its forests and biodiversity.
However, these same commitments threatens Malaysia’s economy where aging plantations threatens palm oil’s crucial contributions to Malaysia’s economy. An assessment by the Malaysian Palm Oil Council on the many other challenges faced by the industry stated that:
"Despite being a key agricultural product of the tropical region, the palm oil sector faces many challenges, both short and long term. These challenges have a direct impact on the performance of this sector. If not addressed promptly, they can adversely and permanently affect the livelihood of millions of people associated with this industry in the region."
If expanding the planted areas in Malaysia is an option for the country to maintain its production volume, there is room for Malaysia to expand without compromising the MSPO standards. According to the MSPO:
"According to the Economic and Industry Development Division of the MPOB, the total area of oil palm plantations in Malaysia in 2021 is 5,733,731 hectares. There is still space for new oil palm planting. However, it must comply with the new requirements of the revised MSPO standards, which prohibit the conversion of natural forest, protected areas, and areas with high conservation values after December 31, 2019, unless approved by the state authority with jurisdiction over land matters.”
The challenge for the MSPO as far as acceptance by its trade partners goes could start by challenging the "negative and unfair" reports on Malaysian palm oil.
Malaysians like Redvin Bilu, Haslinda Yusoff & Intan Salwani Mohamed who labeled the growth of Malaysian palm oil as “green criminology” with no regard towards how much the Malaysian palm oil industry has contributed towards a balanced set of policies for the environment and the economy need to be better informed.
Quoting data from the National Footprint and Biocapacity Accounts (NFAs) is strictly a push for conservation without recognizing the need for development. If the NFAs were a guide to the sustainability of countries, then Singapore and Luxembourg should be shamed for their enormous ecological footprint. Earthworm the NGO understood the importance of palm oil towards Malaysia’s development along with researchers from from Wageningen University & Research (WUR)
The new study by Dr. Ir. H. Wolter Elbersen, senior researcher biomass supply and sustainable production chains, and Maja Slingerland, associate professor, Plant Production Systems at Wageningen University & Research (WUR) believes sustainability has “at least three” dimensions: environmental, social, and economic.
“We show that social and economic sustainability in terms of employment provision and income is very positive for oil palm, which is often forgotten by people only looking at the environment.”
Land rights Lost Harvests and Migrant Labor
As the second largest producer of palm oil globally today, Malaysia has the potential to provide a sustainable source of food and bioenergy from its palm oil industry that could go beyond the reproach of its critics.
According to the Malaysian Palm Oil Council, the country’s efforts into making its palm oil industry sustainable with the inclusion of smallholders and women are helping to shape a more sustainable future, grounded in collaboration and community.
However, the strict standards for certification under the MSPO which has gained the approval of the EU is threatening to exclude some smallholders due to its extreme measures in certification.
According to the National Association of Smallholders Malaysia (PKPKM). President Adzmi Hassan:
“They cannot obtain a licence to sell and transport palm fruit from the MPOB, nor are they entitled to replanting grants under government schemes or Malaysian Sustainable Palm Oil (MSPO) certification,”
The shrinking numbers of smallholders has led to loss of RM1.7 billion over the past four years according to Adzmi Hassan.
But the biggest tragedy according to a veteran of the Malaysian palm oil industry is not even the loss of smallholders due to certification demands but the lack of labor to maximize harvests.
Lost harvests is a crucial point for Malaysia which has pledged to expand oil palm acreage only on brownfields and such.
Joseph Tek Choon Yee, a veteran of the Malaysian palm oil industry highlighted the biggest challenge for the Malaysian palm oil industry as it strives to meet global sustainability standards.
“The real battle for Malaysia’s oil palm industry isn’t fought over presentations with laser-pointers and catered kuih in climate-controlled boardrooms.
It’s happening out in the field – across 5.6 million hectares of estates where the sun blazes, rain pours and planters juggle rising costs, labour shortages and a growing stack of compliance paperwork that seems to multiply faster than the loose fruit on the ground.
The biggest tragedy?
Ripe fruit bunches are left unharvested and loose fruit are left rotting. We’re not just losing potential yield in theory – we’re losing it by the tonnes and tonnes.”
The human factor in sustainability
The lack of labor to recover the massive losses in harvests is a not a unique problem for Malaysia's agricultural sector. Stung by accusations of labor abuse which caused import bans by the US, Malaysia adopted new policies to protect the rights of foreign workers. As new quotas for foreign workers are approved for the plantation sector, it would be wise for Malaysia to monitor how other countries are dealing with the same problems.
Migrant or seasonal workers in Canada "are economically exploited, being charged illegal recruitement fees or being subjected to wage theft, and their visa conditions often make them dependent on their employers for such things as housing, access to healthcare, and access to basic information about their rights."
The same migrant labor problems exist for the UK, Germany and Europe overall.
Making this whole problem of labor abuse in consumer goods worse is the US crackdown on migrant labor which The Conversation warns will trigger human rights abuse across global supply chains.
The challenge for the Malaysian industry is to ensure that migrant workers are part of the story in how its palm oil industry is turning wastes and wasted opportunities into what makes Malaysian palm oil sustainable for the global market.
This is the grand scale of making palm oil sustainable if its impact can benefit the global market from migrant workers to Malaysian farmers and the needs of foreign markets for a no-deforestation source of palm oil. The inclusion of these three very distinct human lives impacted by the Malaysian palm oil industry would burnish the reputation of the industry beyond the reproach of its common critics if Malaysia can pull it off.
Published September 2025 CSPO Watch
Related commentary: Failure of EU European Seed oils in Food vs Fuel Dilemma
The EU Delegation to Malaysia has recently "acknowledged MSPO certification as a credible sustainability scheme with a high standard digital traceability system that can facilitate operators’ compliance with EUDR."
This acknowledgement must surely be gratifying for Malaysia which has made a commitment to protect its forests and biodiversity.
However, these same commitments threatens Malaysia’s economy where aging plantations threatens palm oil’s crucial contributions to Malaysia’s economy. An assessment by the Malaysian Palm Oil Council on the many other challenges faced by the industry stated that:
"Despite being a key agricultural product of the tropical region, the palm oil sector faces many challenges, both short and long term. These challenges have a direct impact on the performance of this sector. If not addressed promptly, they can adversely and permanently affect the livelihood of millions of people associated with this industry in the region."
If expanding the planted areas in Malaysia is an option for the country to maintain its production volume, there is room for Malaysia to expand without compromising the MSPO standards. According to the MSPO:
"According to the Economic and Industry Development Division of the MPOB, the total area of oil palm plantations in Malaysia in 2021 is 5,733,731 hectares. There is still space for new oil palm planting. However, it must comply with the new requirements of the revised MSPO standards, which prohibit the conversion of natural forest, protected areas, and areas with high conservation values after December 31, 2019, unless approved by the state authority with jurisdiction over land matters.”
The challenge for the MSPO as far as acceptance by its trade partners goes could start by challenging the "negative and unfair" reports on Malaysian palm oil.
Malaysians like Redvin Bilu, Haslinda Yusoff & Intan Salwani Mohamed who labeled the growth of Malaysian palm oil as “green criminology” with no regard towards how much the Malaysian palm oil industry has contributed towards a balanced set of policies for the environment and the economy need to be better informed.
Quoting data from the National Footprint and Biocapacity Accounts (NFAs) is strictly a push for conservation without recognizing the need for development. If the NFAs were a guide to the sustainability of countries, then Singapore and Luxembourg should be shamed for their enormous ecological footprint. Earthworm the NGO understood the importance of palm oil towards Malaysia’s development along with researchers from from Wageningen University & Research (WUR)
The new study by Dr. Ir. H. Wolter Elbersen, senior researcher biomass supply and sustainable production chains, and Maja Slingerland, associate professor, Plant Production Systems at Wageningen University & Research (WUR) believes sustainability has “at least three” dimensions: environmental, social, and economic.
“We show that social and economic sustainability in terms of employment provision and income is very positive for oil palm, which is often forgotten by people only looking at the environment.”
Land rights Lost Harvests and Migrant Labor
As the second largest producer of palm oil globally today, Malaysia has the potential to provide a sustainable source of food and bioenergy from its palm oil industry that could go beyond the reproach of its critics.
According to the Malaysian Palm Oil Council, the country’s efforts into making its palm oil industry sustainable with the inclusion of smallholders and women are helping to shape a more sustainable future, grounded in collaboration and community.
However, the strict standards for certification under the MSPO which has gained the approval of the EU is threatening to exclude some smallholders due to its extreme measures in certification.
According to the National Association of Smallholders Malaysia (PKPKM). President Adzmi Hassan:
“They cannot obtain a licence to sell and transport palm fruit from the MPOB, nor are they entitled to replanting grants under government schemes or Malaysian Sustainable Palm Oil (MSPO) certification,”
The shrinking numbers of smallholders has led to loss of RM1.7 billion over the past four years according to Adzmi Hassan.
But the biggest tragedy according to a veteran of the Malaysian palm oil industry is not even the loss of smallholders due to certification demands but the lack of labor to maximize harvests.
Lost harvests is a crucial point for Malaysia which has pledged to expand oil palm acreage only on brownfields and such.
Joseph Tek Choon Yee, a veteran of the Malaysian palm oil industry highlighted the biggest challenge for the Malaysian palm oil industry as it strives to meet global sustainability standards.
“The real battle for Malaysia’s oil palm industry isn’t fought over presentations with laser-pointers and catered kuih in climate-controlled boardrooms.
It’s happening out in the field – across 5.6 million hectares of estates where the sun blazes, rain pours and planters juggle rising costs, labour shortages and a growing stack of compliance paperwork that seems to multiply faster than the loose fruit on the ground.
The biggest tragedy?
Ripe fruit bunches are left unharvested and loose fruit are left rotting. We’re not just losing potential yield in theory – we’re losing it by the tonnes and tonnes.”
The human factor in sustainability
The lack of labor to recover the massive losses in harvests is a not a unique problem for Malaysia's agricultural sector. Stung by accusations of labor abuse which caused import bans by the US, Malaysia adopted new policies to protect the rights of foreign workers. As new quotas for foreign workers are approved for the plantation sector, it would be wise for Malaysia to monitor how other countries are dealing with the same problems.
Migrant or seasonal workers in Canada "are economically exploited, being charged illegal recruitement fees or being subjected to wage theft, and their visa conditions often make them dependent on their employers for such things as housing, access to healthcare, and access to basic information about their rights."
The same migrant labor problems exist for the UK, Germany and Europe overall.
Making this whole problem of labor abuse in consumer goods worse is the US crackdown on migrant labor which The Conversation warns will trigger human rights abuse across global supply chains.
The challenge for the Malaysian industry is to ensure that migrant workers are part of the story in how its palm oil industry is turning wastes and wasted opportunities into what makes Malaysian palm oil sustainable for the global market.
This is the grand scale of making palm oil sustainable if its impact can benefit the global market from migrant workers to Malaysian farmers and the needs of foreign markets for a no-deforestation source of palm oil. The inclusion of these three very distinct human lives impacted by the Malaysian palm oil industry would burnish the reputation of the industry beyond the reproach of its common critics if Malaysia can pull it off.
Published September 2025 CSPO Watch