AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/06/2019

Policy CategoryOther

Policy InstrumentMandatory certification (environmental policy)

DescriptionConcerned about delays in implementation of Malaysia’s mandatory sustainable palm oil standard, announced additional financial incentives to speed up the certification process among small- and medium- sized growers.

NotesConcerned about delays in the implementation of Malaysia’s mandatory Sustainable Palm Oil standard (MSPO), the Government announced additional support measures to speed up the certification process (see also MPPU Dec.’17 & May’19). MYR 100 million (USD 24 million) have been set aside to entirely cover the auditing fees incurred by small and medium-sized estates (defined as holdings cultivating between 40 and 1 000 hectares). In addition, the said estates can now apply for a 50 percent reimbursement – up to a maximum of MYR 10 000 (USD 2 432) – of costs incurred while preparing for MSPO certification. As for organised smallholders (farmers running plantations of less than 40 hectares), support payments have been raised from MYR 10 to MYR 55 per hectare (respectively USD 2.43 and 13.48). Eligible applicants will receive the various payments once they obtained the MSPO certificate.