KUALA LUMPUR: Advokasi Perusahaan dan Industri (API), an advocacy group dedicated to promoting business and industry growth, urges consumers, supermarkets and retailers to be informed of the new regulation under the Trade Description Act 2011 (Act 730), which prohibits the use of discriminatory labels against palm oil.
The regulation, which came into force in March 2022, has come into full effect now that the one-year grace period is over. Consequently, penalties of RM250,000 or five-years of jail will be imposed to any individual who violates the law.
These comments come following news reports where local retailers and supermarkets were urged to avoid false or misleading statements in their labelling or advertisement pertaining to palm oil.
API managing director Datuk Fazli Nordin (pix) said, “It’s completely wrong for brands to mislead people with false information about palm oil, or deceptive ‘no palm oil claims’ on products. We all have a right to make unbiased decisions in the marketplace, but unfortunately some brands have been abusing their power.”
“False claims about palm oil skew the market for consumers and undermine a key driver of our national economic growth,” he added.
“We are aware of the concerns surrounding palm oil production, however several global compliance measures are in progress to improve the efficiency and sustainability of palm oil production and bolster a major drive of economic growth in Malaysia. As one of the largest producers of palm oil, Malaysia is at the forefront of efforts to enhance regulations in a bid to implement global standards for sustainable palm oil.”
In a recent development, the United Kingdom (UK) policymakers have made a significant commitment to recognise the Malaysian Sustainable Palm Oil (MSPO) certification following Deputy Prime Minister Datuk Seri Fadillah Yusof's recent official visit to the UK. This recognition serves as an important step in ensuring the sustainability of commodities entering the country. Now in Malaysia, there are more than 96% of palm oil planted areas have obtained the MSPO certification.
Fazli said, “We must not overlook the significant harm these practices can have on the local economy. It is therefore crucial to recognise the vital role that the palm oil industry plays in supporting smallholders and our economy at large. Palm oil cultivation provides income and livelihoods for millions of small-scale farmers, supporting local communities and contributing significantly to rural economies.”
“Research has shown that palm oil is proven to be the most efficient crop, as other oilseeds require 4 to 10 times more land to grow. It can be grown on degraded land, and there are sustainable palm oil production practices that can help to reduce the environmental impact of palm oil production. As a global leader in palm oil production, Malaysia has been committed to reducing environmental impact and protecting forests and wildlife threatened by deforestation.”
He added, “This anti-competitive behavior disadvantages both consumers and palm oil producers. We firmly believe in the power of consumer choice and aim to protect their right to access accurate and non-discriminatory product information. Deceptive anti-palm oil labelling practices not only harm consumers but also hinder fair competition, undermining the essence of a free market economy.”
