Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani
KUALA LUMPUR: Malaysian Sustainable Palm Oil (MSPO) will establish the MSPO Impact Alliance by the third quarter (3Q) of this year, a new multi-stakeholder platform that aims to explore and test innovative models that enhance the value of certification.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the platform was established through collaboration with non-governmental organisations, accreditation bodies, financiers, technology partners, and multinational fast-moving consumer goods companies to support various pilot initiatives.
The pilot initiatives supported include green financing for certified producers, digitised traceability solutions, deforestation monitoring tools, and inclusive sourcing incentives for smallholders.
The minister said the idea is to move multinational companies using palm oil to adhere to the concept of sustainability.
"Therefore, our sustainability concept is certification, and we strive to be a partner so that they (the multinational companies) can continue to give us feedback.
"There must be a two-way system to perfect the process. You need two-way communication, which means both buyers and producers.
"The feedback provided will include suggestions for improvement to the (MSPO) standards, which we will introduce into the system,” he told the media after the memorandum of understanding (MoU) signing ceremony between MSPO and Nestle Malaysia here today.
Johari said this Impact Alliance platform would also focus on practical solutions, including traceability for smallholders, tools for social compliance, preparation for emerging regulations like the European Union Deforestation Regulation, and joint efforts to demonstrate impact.
He said these are some of the initiatives we are taking to engage more multinational companies operating in our country, especially those involved in food products such as confectionery, as well as non-food products like personal care items and detergents.
Meanwhile, MSPO and Nestle Malaysia said in a joint statement that the MoU marked a significant step toward advancing sustainability, traceability, and inclusivity across the Malaysian palm oil sector.
Johari said the collaboration is set to elevate responsible palm oil sourcing, combining MSPO’s inclusive national certification framework with Nestle Malaysia’s commitment to responsible procurement and global sourcing experience.
"Partnerships with global brands such as Nestlé present Malaysia with a valuable opportunity to strengthen our reputation as a producer of high-quality, sustainably cultivated palm oil.
"This MoU focuses on practical action through improving traceability, strengthening responsible labour practices, empowering smallholders with knowledge and resources, and aligning with global standards,” he added.
Fundamentally, Johari added that he hopes this partnership can help MSPO secure recognition, improve buyer confidence, and ensure Malaysian palm oil remains competitive in high-standard markets. - Bernama
