Insights into Malaysian Sustainable Palm Oil
The Malaysian Palm Oil Certification Council (MPOCC) which is charged with the certification of palm oil under Malaysian Sustainable Palm Oil (MSPO) has finished its public consultations on the draft standards.
The public consultation had asked experts and interested parties to provide comment as the MSPO looks towards becoming a global standard.
We reached out to the MPOCC to gain some insights into the feedback received through the consultation.
The public consultation had asked experts and interested parties to provide comment as the MSPO looks towards becoming a global standard.
We reached out to the MPOCC to gain some insights into the feedback received through the consultation.
CEO-MPOCC, Mohammad Hafezh Abdul Rahman
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CSPO Watch. Are there any highlights from the public consultations that can be shared?
MPOCC. The response to the public consultation was very good. It gave us a lot of insight into what can or should be added to the MSPO standards. Unfortunately, I cannot give you any specifics at this time. All comments are being compiled and will be presented to the multi-stakeholder Working Groups for the MSPO for their consideration and deliberation. |
CSPO Watch. That sounds the same as what the voluntary certification schemes are doing. Considering the criticisms against voluntary schemes and the calls for national due diligence, how do you see the MSPO in all of this?
MPOCC. We strive for the same credibility as other voluntary standards. These are a good starting point where Seller A certifies its operations by using a third party before selling to Buyer B. Where we differ is that the MSPO is a national commitment with far reaching impacts on all levels of Malaysian society.
Therefore, prior to adopting any new standards or principles to the MSPO, the entire country, so to speak, has to get involved. From the relevant ministries all the way down to the workers unions and NGOs. It is a heavy bulky process but it has to be done this way. Its impact on Malaysia as a whole is too big to let the decisions be made by the stakeholders in the Malaysian palm oil industry.
CSPO Watch. Wouldn’t it be easier to follow what other certification groups have done? For example, certify timber and palm oil through different certification schemes that are independent of one another?
MPOCC. It might be easier but why not maximize the impact of certification by being mindful of its impact on society as a whole?
We have compiled all the industry’s stakeholders information and data. While we want to strive for the sustainable production of Malaysian palm oil, we also do not want to burden those who will be involved in it to a point where it affects their industry.
The MSPO standards development involves multi-stakeholder Working Groups so we have to be sensitive about their concerns and address them accordingly.
"The MSPO is meant to be a working model of national due diligence which is increasingly being demanded by markets like the UK and the EU."
The hope of the Malaysian government and its palm oil industry is that we should not fight for the scraps at the bottom of the barrel. Not in this day and age when food and energy supplies have such a negative impact on the global environment. We are betting on the hope that developed countries like the US and those in the EU will acknowledge that our efforts contribute to global biodiversity and fight climate change. And for the sake of a sustainable future, support what Malaysian palm oil is doing and acknowledge its sustainability through the MSPO.
CSPO Watch: Speaking of the US, any thoughts on the Withold Restriction Orders placed by the US CBP against some Malaysian companies?
MPOCC. My personal opinion is the US should afford some flexibility. The situation in Malaysia is not so different from the US. Both countries are seen as lands of opportunity for poor people from other countries.
As one of the best developed countries in the region with a legal minimum wage that is higher than most our neighbours, Malaysia is a magnet for migant workers who are unable to find a means out of destitution in their homes countries.
Its supposed to be a win-win as most of the hard labour jobs like construction or plantation work is shunned by Malaysians. It is true for the most part, when migrant workers come through the legal channels and are registered. Malaysia ranks high in migrant worker remittances which is part of the UN’s SDGs.
The Malaysian palm oil industry is proud of its contribution to the alleviation of poverty of workers from neighbouring countries. We have many inspirational stories from workers from Indonesia, Bangladesh and Sri Lanka who boast of supporting their families back home while enjoying a lifestyle that they could not afford if they worked in their home countries.
As a certification scheme for global sustainability, we want all the stories to be like this. No one wants to hear stories of labour abuse in their cocoa or palm oil. We all want to be associated with stories of how industries help lift poor people out of poverty.
In a way, we feel the US is purposely targeting the Malaysian palm oil industry as it knows how important it is to Malaysia and they want us to step up. How else to explain the punitive actions when cocoa from African countries escape the same actions?
The clear solution is the protection of workers with certifications like MSPO. We are taking a hard look at standards that the US accepts like the ILO. It will be challenging but as a global pioneer for sustainable vegetable oils, we are reaching this far up so that the MSPO is accepted as a global model.
CSPO Watch. Your point in Malaysian palm oil’s contribution to the GDP of neighbouring countries is noted but what about the UN’s SDGs for Malaysia?
MPOCC. I think you’re referring to the arguments in the early days of the industry in Malaysia. We have come a long way since the 80s. The industry has matured in Malaysia. In fact, we tend to agree with the findings of the European Parliament which resolved that sustainable development can only be used as a reason for deforestation up to a certain point.
Malaysia has recognized that this is a valid point. You may have noted that successive governments in Malaysia have pledged to cap the expansion of palm oil, if any, to 6.5 million hectares. Initially the hope was to cap it at 6 million hectares which is more or less the existing cultivated areas. This was increased to 6.5 million hectares after the Dayak Oil Palm Planters Association cautioned that it could exclude the indigenous farmers who want the option to join the palm oil supply chain.
The Malaysian palm oil industry supports the rights of indigenous peoples absolutely without conditions. Some 28,000 Dayak families from Sarawak are currently active in the supply of Malaysian palm oil plus many more in Sabah and even in Peninsular side.
Having said that, we also recognize the negative environmental impacts that these smallholders could have. For that reason, the MSPO is being used to support the state government’s pledge that any expansion of palm oil in Sarawak, will only be done on NCR lands, meaning lands that have been previously cleared.
The MSPO’s role in ensuring their sustainability is by introducing the expectations of our buyers to these indigenous smallholders. We want to ensure that their farms do not cause unnecessary harm to their health or the natural environment.
CSPO Watch. When can we expect to see the results of the public consultation? Empowering local communities and addressing labour concerns sounds like now would be a very good time.
MPOCC. Hopefully by the end of the year or early 2022. The revisions may reflect the feedback on sustainability issues in deforestation, labour and empowerment of local communities.
At the MPOCC, we know what revisions we would like to include. But as I said, the revisions will have a wide impact on society in Malaysia as a whole because these will become the law, not just principles for palm oil companies to follow as they please. As of now, only palm oil plantations or OPMC is mandatory under the MPOB Act but not the MSPO Supply Chain Certification Standard. Therefore, the revisions have to go through the rigorous processes of the Working Groups as if a new law was being introduced.
End Interview
We thank the Chief Executive Officer of MPOCC, Mohammad Hafezh Abdul Rahman for sharing his thoughts.
CSPO Watch. July 2021
MPOCC. We strive for the same credibility as other voluntary standards. These are a good starting point where Seller A certifies its operations by using a third party before selling to Buyer B. Where we differ is that the MSPO is a national commitment with far reaching impacts on all levels of Malaysian society.
Therefore, prior to adopting any new standards or principles to the MSPO, the entire country, so to speak, has to get involved. From the relevant ministries all the way down to the workers unions and NGOs. It is a heavy bulky process but it has to be done this way. Its impact on Malaysia as a whole is too big to let the decisions be made by the stakeholders in the Malaysian palm oil industry.
CSPO Watch. Wouldn’t it be easier to follow what other certification groups have done? For example, certify timber and palm oil through different certification schemes that are independent of one another?
MPOCC. It might be easier but why not maximize the impact of certification by being mindful of its impact on society as a whole?
We have compiled all the industry’s stakeholders information and data. While we want to strive for the sustainable production of Malaysian palm oil, we also do not want to burden those who will be involved in it to a point where it affects their industry.
The MSPO standards development involves multi-stakeholder Working Groups so we have to be sensitive about their concerns and address them accordingly.
"The MSPO is meant to be a working model of national due diligence which is increasingly being demanded by markets like the UK and the EU."
The hope of the Malaysian government and its palm oil industry is that we should not fight for the scraps at the bottom of the barrel. Not in this day and age when food and energy supplies have such a negative impact on the global environment. We are betting on the hope that developed countries like the US and those in the EU will acknowledge that our efforts contribute to global biodiversity and fight climate change. And for the sake of a sustainable future, support what Malaysian palm oil is doing and acknowledge its sustainability through the MSPO.
CSPO Watch: Speaking of the US, any thoughts on the Withold Restriction Orders placed by the US CBP against some Malaysian companies?
MPOCC. My personal opinion is the US should afford some flexibility. The situation in Malaysia is not so different from the US. Both countries are seen as lands of opportunity for poor people from other countries.
As one of the best developed countries in the region with a legal minimum wage that is higher than most our neighbours, Malaysia is a magnet for migant workers who are unable to find a means out of destitution in their homes countries.
Its supposed to be a win-win as most of the hard labour jobs like construction or plantation work is shunned by Malaysians. It is true for the most part, when migrant workers come through the legal channels and are registered. Malaysia ranks high in migrant worker remittances which is part of the UN’s SDGs.
The Malaysian palm oil industry is proud of its contribution to the alleviation of poverty of workers from neighbouring countries. We have many inspirational stories from workers from Indonesia, Bangladesh and Sri Lanka who boast of supporting their families back home while enjoying a lifestyle that they could not afford if they worked in their home countries.
As a certification scheme for global sustainability, we want all the stories to be like this. No one wants to hear stories of labour abuse in their cocoa or palm oil. We all want to be associated with stories of how industries help lift poor people out of poverty.
In a way, we feel the US is purposely targeting the Malaysian palm oil industry as it knows how important it is to Malaysia and they want us to step up. How else to explain the punitive actions when cocoa from African countries escape the same actions?
The clear solution is the protection of workers with certifications like MSPO. We are taking a hard look at standards that the US accepts like the ILO. It will be challenging but as a global pioneer for sustainable vegetable oils, we are reaching this far up so that the MSPO is accepted as a global model.
CSPO Watch. Your point in Malaysian palm oil’s contribution to the GDP of neighbouring countries is noted but what about the UN’s SDGs for Malaysia?
MPOCC. I think you’re referring to the arguments in the early days of the industry in Malaysia. We have come a long way since the 80s. The industry has matured in Malaysia. In fact, we tend to agree with the findings of the European Parliament which resolved that sustainable development can only be used as a reason for deforestation up to a certain point.
Malaysia has recognized that this is a valid point. You may have noted that successive governments in Malaysia have pledged to cap the expansion of palm oil, if any, to 6.5 million hectares. Initially the hope was to cap it at 6 million hectares which is more or less the existing cultivated areas. This was increased to 6.5 million hectares after the Dayak Oil Palm Planters Association cautioned that it could exclude the indigenous farmers who want the option to join the palm oil supply chain.
The Malaysian palm oil industry supports the rights of indigenous peoples absolutely without conditions. Some 28,000 Dayak families from Sarawak are currently active in the supply of Malaysian palm oil plus many more in Sabah and even in Peninsular side.
Having said that, we also recognize the negative environmental impacts that these smallholders could have. For that reason, the MSPO is being used to support the state government’s pledge that any expansion of palm oil in Sarawak, will only be done on NCR lands, meaning lands that have been previously cleared.
The MSPO’s role in ensuring their sustainability is by introducing the expectations of our buyers to these indigenous smallholders. We want to ensure that their farms do not cause unnecessary harm to their health or the natural environment.
CSPO Watch. When can we expect to see the results of the public consultation? Empowering local communities and addressing labour concerns sounds like now would be a very good time.
MPOCC. Hopefully by the end of the year or early 2022. The revisions may reflect the feedback on sustainability issues in deforestation, labour and empowerment of local communities.
At the MPOCC, we know what revisions we would like to include. But as I said, the revisions will have a wide impact on society in Malaysia as a whole because these will become the law, not just principles for palm oil companies to follow as they please. As of now, only palm oil plantations or OPMC is mandatory under the MPOB Act but not the MSPO Supply Chain Certification Standard. Therefore, the revisions have to go through the rigorous processes of the Working Groups as if a new law was being introduced.
End Interview
We thank the Chief Executive Officer of MPOCC, Mohammad Hafezh Abdul Rahman for sharing his thoughts.
CSPO Watch. July 2021