Inauguration of MPOCC Headquarters

Speech by YB Dato’ Sri Wee Jeck Seng, Hon. Deputy Minister, Minister of Plantation Industries and Commodities (MPIC)

YB Dato’ Sri Wee Jeck Seng gave his speech on behalf of the Hon. Minister of Plantation Industries and Commodities, YB Dato’ Dr. Mohd. Khairuddin Aman Razali and he would like to record their appreciation to the Malaysian Palm Oil Certification Council (MPOCC) for the invitation to inaugurate its new headquarters on 22 September 2020.

MPOCC continues to contribute significantly from the time it was set up in 2015 as an independent body to develop and operate the Malaysian Susainable Palm Oil (MSPO) certification scheme. The MSPO certification scheme began on a voluntary basis in January 2015 with the objective to certify the entire palm oil industry in Malaysia including the smallholders and small medium scale operators in response to the business-to-business based Roundtable on Sustainable Palm Oil (RSPO) and the International Sustainability Carbon Certification (ISCC) for the biodiesel market.

Unlike the other sustainable palm oil certification scheme, the Malaysian Government announced in May 2017 that the MSPO scheme will be made mandatory with effect from 1 January 2020. This decision was reached because we wanted a game-changing initiative to ensure that the entire Malaysian palm oil supply chain meets the growing requirements for sustainability to be better managed, accountable, responsible and transparent. This thus demonstrates our commitment towards the sustainable production of palm oil in meeting the global demand for Certified Sustainable Development Goals (SDG) 2030 and the 5Ps of People, Planet, Prosperity, Peace and Partnership.

In implementing the MSPO certification scheme, it was also a strategic move to improve the competitiveness and image of the Malaysian palm oil industry which has been proven to provide a host of benefits, including enhanced productivity through the application of Good Agriculture Practices. This translates to better livelihoods including higher income and enhanced welfare of the smallholders who account for close to 40 percent of the total oil palm planted areas in Malaysia. It was also meant to ensure that Malaysian palm oil is known as a premium palm oil and as God’s gift for the world.

As of 31 August 2020, a total of 5,085,339 hectares of oil palm planted areas have been certified under the MSPO Certification Scheme. This accounts for to 86.19 percent of the 5,900,157 hectares total planted area including 919,031 hectares of oil palm areas planted by both the independent smallholders and organised smallholders. Additionally, 418 palm oil mills from a total of 452 palm oil mills or 92.48 percent have also been certified under the MSPO Scheme.

Meanwhile, in October 2018, the Malaysian Sustainable Palm Oil Supply Chain Certification Standard (MSPO SCCS) was launched. It is meant to cover the management requirements and traceability of the production throughout the supply chain from the raw materials to processing and manufacturing of palm oil and palm oil-based products. The MSPO SCCS is designed to deliver confidence and credibility to the customers and end-users that the raw materials originated from sustainability managed oil palm planted areas.

Subsequently in November 2018, the MSPO Trace, an IT monitoring platform which delivers accountability and traceability throughout the MSPO certified value chain from grower to customer was launched. This will further enhance the MSPO supply chain traceability and transparency. Consumers will be ablue to trace the entire supply chain of their MSPO-branded products back to source, once this is fully implemented.

“We are also here today to recognise and celebrate two Malaysian Companies for being amongst the first users of the MSPO logo on-product labels. We are pleased with the achievement of Kwantas Corporation Berhad and Delima Oils Sdn Bhd for making the MSPO certified products distinguishable from other palm oil products and we hope that it will be commercially available for consumers soon. I would also like to take this opportunity to urge other companies and brands to work with MPOCC towards achieving this too.”

The Government will continue to support the MPOB and MPOCC’s efforts in enhancing the acceptance in recognition for MSPO certification both domestically and internationally. Continuous engagements will be held with other countries and organisations for MSPO to gain further recognition and to increase the marketability of MSPO certified palm oil and palm products internationally. Meanwhile, as a long-term measure, we will continue strengthening the principles and criteria of the MSPO Standards and its implementation to reflect evolving international best practices and market demands.

“Once again, I wish to extend my congratulations to Kwantas Corporation Berhad and Delima Oils Sdn Bhd for their MSPO certified products and having the MSPO logo on their product labels. I would also like to congratulate MPOCC on the inauguration of their headquarters. My appreciation once again, in being invited here today and I look forward to seeing MPOCC grow and achieve greater heights in the future. With that, on behalf of the Hon. Minister of MPIC, I hereby inaugurate MPOCC’s new headquarters.”