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BUSINESS • 11/09/2025 04:44 PM

EU's MSPO Acknowledgement To Ease Compliance Barriers, Boost Trade -- MPOC

By Danni Haizal Danial Donald

KUALA LUMPUR, Sept 11 (Bernama) -- The European Union’s (EU) acknowledgement of the Malaysian Sustainable Palm Oil (MSPO) certification marks a significant milestone in reducing compliance barriers for Malaysian exporters, said the Malaysian Palm Oil Council (MPOC).

Its chief executive officer Belvinder Kaur Sron said the move also facilitates smoother trade flows and benefits both smallholders and larger producers.

She said the acknowledgement is expected to strengthen market access, bolster consumer confidence, and encourage greater international cooperation on deforestation-free trade.

“We are pleased that the MSPO has now been formally recognised, and remain confident that Malaysia will also be benchmarked as low risk through the EU’s due process, supported by evidence that national primary forest loss rates have declined by 70 per cent in the last decade, according to the World Resources Institute.

“The recognition reinforces its credibility as a robust sustainability standard and ensures alignment with the EU Deforestation Regulation (EUDR),” she told Bernama.

Yesterday, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani announced that the EU has officially acknowledged the MSPO certification as a credible sustainability standard with a high-standard digital traceability system that can facilitate operators’ compliance with the EUDR.

He said the acknowledgement affirms Malaysia’s leadership in sustainable palm oil, as the MSPO provides assurance on legality, cut-off date compliance, and digital traceability, while ensuring more than half a million smallholders are fully part of the sustainability agenda.

Echoing Johari’s views, Belvinder said the EU’s recognition has transformed the MSPO from a national mandate into an internationally accepted benchmark.

“Its validation under the EUDR positions market access as a new form of premium. 

“This acknowledgement narrows the perception gap with global standards, enhances credibility, and provides strong incentives, particularly for estates and smallholders, to accelerate compliance through assured trade access and long-term sustainability,” she said.

On another note, she said Malaysia will continue to focus on strengthening traceability through the national traceability system and digital integration of smallholders, enhancing data integrity and third-party verification in audits, and maintaining active engagement with EU stakeholders.

“Continued investment in technology and smallholder capacity-building will reinforce MSPO’s credibility, inclusivity, and alignment with global sustainability principles, positioning it as a trusted international standard,” she added.

-- BERNAMA


 

 

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