Author:
YAP PHILIP,ABDUL RAHMAN AMIRATUL AZZUWANA ANIQAH,ABIDIN MOHAMAD HAFIZ,ISMAIL MOHD RAIS,ZULKIFLI HAFIFI HAFIZ
Abstract
The MSPO certification scheme was adopted nationwide and made mandatory for all
smallholders, plantations, and mills starting January 1, 2020. In Malaysia, an independent smallholder is defined as an individual who owns land less than 40.46 hectares in aggregate, and they account for 17% of the total oil palm planted area. However, the long duration required to obtain MSPO certification for independent smallholders affects their eligibility to supply their fresh fruit bunches (FFB) to certified palm oil mills for export. The study showed that during the certification phase for independent smallholders, the preparation of the Stage 2 audit plan and stakeholders’ consultation required the longest time to be completed in 52 days, followed by drafting of the final audit report with 29 days and preparation of the Stage 1 audit plan with 25 days. Meanwhile, the issuance of the MSPO certificate required the shortest time to be completed in one day. Therefore, it is only proper that Malaysia, as one of the leading palm oil producers, has a comprehensive certification scheme that is locally adaptable and meets the sustainability requirements internationally, following the principles of sustainability upon which the MSPO standard was built.
Publisher
Universiti Putra Malaysia
Subject
Strategy and Management,General Economics, Econometrics and Finance,Business and International Management
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