The Readiness Of Smallholders To Pursue The Malaysian Sustainable Palm Oil Certification For Conservation And Sustainability Initiative: A Qualitative Study In 2020

Abstract

MSPO is a compliance certificate for oil palm farming activities. MSPO certification is a critical component of the Malaysian palm oil industry, providing clear guidelines for a sustainable plantation management and administration. In Malaysia, palm oil players are classified into two categories: (i) private actors, who account for the majority of the industry's revenue, and (ii) smallholder actors, who are further classified into two subgroups: independent and organised smallholders. The main objectives of this study are to ascertain the level of readiness for and implementation of Malaysian Sustainable Palm Oil (MSPO) by organised smallholders and participating agencies, as well as to gain an understanding of the issues confronting the palm oil industry, including the challenges posed by Climate Change and the COVID-19 pandemic. Between March 9th and April 17th, 2020, there were five in-depth interviews conducted with individuals with experience and competence in the palm oil sector, government agencies, and organised smallholders. This in-depth interview was also supported by secondary data. This study showed that the readiness of smallholder to pursue the MSPO was still low as most of information is still not well received by the small holders. The findings indicated that the EU's decision to ban the use of palm oil in Europe prompted Malaysia's palm oil sector to convert into a more sustainable one. MSPO will increase awareness and comprehension of the requirements, terms and rules, benefits, and procedures that are critical for smallholders who wish to comply with MSPO.