KUALA LUMPUR: The Malaysian Sustainable Palm Oil (MSPO) certification has helped Malaysia meet sustainability requirements increasingly incorporated into free trade agreements (FTAs), according to the Malaysian Palm Oil Board (MPOB).
MPOB head of trade development unit Nazlin Ismail said that over the years, FTAs have evolved from focusing solely on trade to including sustainability elements.
Thus, she said Malaysia could promote the government's measures to ensure the sustainability of palm oil production through MSPO certification in the FTA discussion, while also expanding market access.
She said Malaysia’s participation in FTAs also helps companies, including small and medium enterprises (SMEs), to integrate into global trade.
"Apart from strengthening trade relations, an FTA can be leveraged to promote sustainability, particularly our MSPO-certified palm oil.
"An FTA also provides a platform to showcase and prioritise MSPO certification, ensuring that sustainable production practises are recognised and valued by trading partners,” said Nazlin at the Palm Oil Economic Review and Outlook Seminar here today.
She said modern FTAs have incorporated chapters on the environment, labour, government, trade, and sustainable development (TSD), as well as sustainable food systems, which place emphasis on sustainability throughout the supply chain.
She said that as the global market becomes more sensitive to environmental, social, and governance requirements, the TSD chapter plays an important role in ensuring that economic growth aligns with long-term sustainable development.
"So, the TSD chapter is actually critical for maintaining our market access as global buyers emphasise sustainability,” she added. - Bernama
