POINTERS: Malaysian Sustainable Palm Oil (MSPO) Certification Guidelines and Updates

Malaysian Sustainable Palm Oil (MSPO) has been gazetted as Malaysian Standard (MS) on the 5th September 2013 and launched by YAB Deputy Prime Minister on 19 November 2013. With the launching of the standard, the draft certification scheme was tested at the plantations, smallholders and mills in 2014. During the pilot run, seven premises from each sector – plantation, smallholder and mill – participated with a total of 21 premises involved. The area of plantation and smallholder certified under MSPO schemes was 18950 ha, and number of mills was four. In the same year, 2014, YB Minister of MPIC announced that the implementation of MSPO would be on 1st January 2015. Since then, the certified areas for plantations and smallholdings has reached 111,451.46ha, while the number of mills certified under MSPO is now 14 with CPO production of 362,430.46 tonne and palm kernel of 79,549.50 tonne. This presentation will describe the MSPO certification procedure and activities related to MSPO.

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Questions & Answers (9) :

Roslan Othman

6 years ago

Dear Dr Ainie, To distinguish between new planting procedure on RSPO and MSPO in significant manner. What I understand is that in RSPO criteria, deforestation is not allowed and LUCC/HCVN to be carried out initially and follow by Land compensation and remedial procedures if there is any. How about MSPO ? thanks.

Mohamad Raid Majzoub

8 years ago

Dear Dr. Ainie Kuntom, Thank you for your useful presentation. Is it possible for the manufacturers of finished PO products and packers to place MSPO logo on their product if they sourced MSPO certified Palm Oil , do they need any audit or simply adding the logo?

Ainie Kuntom:
Dear Mr M Raid, Yes you need to be audited too to use the logo.
8 years ago

Ainie Kuntom

8 years ago

Dear Mr Kazmi, the cost is less than RM10/ha based on our pilot run. You can factored in the cost of certification into your selling price, the choice is your company because there is no premium on MSPO certified palm oil. The price will be based on demand/supply of the normal palm oil.

Kazmi:
Thanks Dr. Ainie
8 years ago

Ainie Kuntom

8 years ago

Thank you En M Jaaffar. Yes trades of palm oil globally is based on willing buyer willing seller basis. Our interaction with various government agencies on market of MSPO is to give the buyer the choice to choose the type of sustainably certified palm oil. MSPO certified palm oil is another option for the buyer. It is also voluntary.

Mohammad Jaaffar Ahmad

8 years ago

Thank you Dr. Ainie. Currently all trades of palm oil globally is based on willing buyer willing seller basis. Why the Malaysian Govt. is negotiating with various government agencies in various countries for market acceptance of MSPO? Shouldn\'t we leave the market forces to decide on their preferred products? Have we learnt anything from the mandatory requirements and market acceptance of ISPO? TQ

Kazmi

8 years ago

Thanks Dr. Ainie. Can help to enlighten us on the cost of obtain certified MSPO in term of per tonne or per hectare basis? Are producers allow or justify to factor in their additional costs in MSPO selling prices? Will the prices of certified MSPO will be based on the demand/supply parameters at marketplace? Regards and thank you

Norhaznita Husin

8 years ago

Hi Dr.Ainie I have two questions: 1. In the recent years, sustainability has become an access issue into certain markets especially in the USA and Europe. By securing both international (RSPO) and national (MSPO) certifications, do you think it will enhance the access to the international market and ensure a good recognition for the company? 2. Currently, MSPO affiliation is on a voluntary basis. Do MPOB / Ministry have any intention to make it mandatory to all in the industry?

Dr. Ainie Kuntom:
1. Yes by having both it will enhance the company access into the global markets. We are in the midst of negotiating with various government agencies in various countries for market acceptance of our MSPO. 2. MSPO may be mandatory and it is only a matter of time.
8 years ago

Norhaznita Husin:
Thank you so much Dr. Ainie for your comment and useful presentation.
8 years ago

Steffen Preusser

8 years ago

Thank you for your presentation, Dr Kuntom! I have two questions: 1) What the key differences (advantages) between MSPO and other existing certification schemes such as ISCC and RSPO? 2) For which segment of the palm oil market was MSPO developed? Best regards, Steffen

Dr. Ainie Kuntom:
Difference: i) Standard development MSPO - National standard (7 principles) RSPO - Business – to – business initiative. (8 principles) ii) Deforestation MSPO - Subject to approval by local authority. Only land gazetted as agricultural land RSPO - No deforestation iii) Green house gas MSPO - Inventory of sources of GHG emissions and reduction of emission RSPO - Plan to reduce emissions. RSPO-Plus includes the GHG through the supply chain iv) Water management on peat land MSPO - Maintain water table of 30-50 cm from the surface RSPO - Maintain water table at 40-60 cm from the surface v) New development (peat land) MSPO - Compliance to local authority RSPO - Can plant in new areas but must measure the carbon stock
8 years ago

Dr. Ainie Kuntom:
It is for all markets and currently it is for CPO and palm oil for biofuel.
8 years ago

Steffen Preusser

8 years ago