Govt enlists FGV's help to assist smallholders get MSPO certification

PETALING JAYA: Primary Industries Minister Teresa Kok said the ministry will assist FGV Holdings Bhd in attracting investors to develop the downstream palm oil segment and in turn look to it for help with getting small palm oil growers obtain Malaysian Sustainable Palm Oil (MSPO) certification.
Kok said at a press conference at the International Strategy Institute’s Corporate Malaysia Summit 2018, that the ministry is willing to work with FGV Holdings if the company has plans to develop the downstream palm oil segment-by providing assistance in attracting investors.
“I have met with the FGV team last week. I know it’s challenging for FGV. I am hopeful because I find the new team members are committed to turnaround the company and they have briefed me on their plans and so on,” she said.
Kok said the government in turn will need FGV’s help to engage with small palm oil growers to get certifications in line with the government’s goal to get 100% of Malaysian palm oil MSPO certified by end of 2019.
To date the total rate of MSPO certification stands at 20%.
Kok, who will be making a trip to Sabah this week, said the ministry needs to work with FGV in order to move fast in interior places to get smallholders MSPO certified.
She hopes the governments of the two east Malaysian states will assist the federal government in getting small growers their MSPO certifications. The government will also be working with NGOs with this regard.
Engagements with the aforementioned parties is crucial due to the lack of awareness on the importance of making Malaysian palm oil highly rated and accepted internationally.
“In order to let their palm oil to get accepted by the international community they must get the certification because now a lot of countries especially Western countries want to find out the traceability of certain products. So we want to make sure smallholders are not marginalised in this process,” she added.
Kok reiterated the government’s stand to maintain Malaysian forestry land, with no more expansion of palm oil estates.
She said although Malaysian palm oil came under the scanner for issues such as deforestation and wildlife endangerment, the reality is 54.6% of Malaysia’s forestry land is intact.
On another matter, Kok said while low palm oil prices may make it a good time to implement the B10 biodiesel mandate – from the current B7 – the government is still in the process of consultation and formulating policies.