KUALA LUMPUR: The Malaysian Sustainable Palm Oil (MSPO) certificate of a company found to be non-compliant, such as through encroachment or violation of land rights, including Native Customary Rights (NCR) land, can be suspended or revoked until the issue is resolved.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the action of accredited certification bodies in suspending certificates is in line with MSPO 2022 requirements.
He emphasised that conflicts should be resolved through negotiations with the state government or in court.
“MSPO requires lawful land ownership and land free of disputes, as specified in Criteria 3.3 and 3.4 of MSPO 2022,” he said.
Chan explained that two things are happening during an official dispute; firstly, an audit may be unable to fully verify compliance, particularly indicators related to legal ownership and community rights.
“Secondly, the reputational risk rises if MSPO is seen to be certifying a company involved in a land dispute,” he told the Dewan Negara during a question-and-answer session today.
The deputy minister was responding to Senator Abun Sui Anyit regarding efforts to increase MSPO certification for Sarawak’s palm oil for export markets and whether MSPO certification also takes into account encroachment or complaints related to rights violations, including NCR, within the country.
Chan said MSPO 2.0, which took effect on Jan 1, 2025, emphasises the auditing process by certification bodies accredited by the Department of Standards Malaysia and requires operators to demonstrate the status and evidence of lawful land ownership, including NCR land recognised under state law.
“In this context, MSPO has issued the Specific Guidance Document on MS2530:2022 Compliance of New Oil Palm Planting for Sarawak NCR land, developed in consultation with state government representatives, community stakeholders and palm oil industry players in Sarawak.
“This document provides clear guidance to NCR landowners on documentation processes, community verification and compliance steps to obtain MSPO certification,” he said.
Chan said MSPO 2.0 also emphasises the need to obtain consent, engage and consult with local communities, conduct social impact assessments and high conservation value assessments, and provide complaint and dispute-resolution mechanisms through the e-MSPO system, which is open to all stakeholders.
“The government, through the Ministry of Plantation and Commodities and its agencies, remains committed to increasing the rate of MSPO certification nationwide, including in Sarawak, to ensure the country’s palm oil remains competitive and accepted in international markets.
“Among the government’s main efforts are continuous engagement programmes, training and technical guidance, support and incentives for independent smallholders to cover certification costs, assistance with mapping, and cooperating with state governments to facilitate compliance and land issues,” he added.
