Still Low Awareness On Need For MSPO Certification: Minister

KUALA LUMPUR, July 23 (Bernama) -- The level of oil palm growers that have achieved the Malaysian Sustainable Palm Oil (MSPO) certification, which is needed to raise the crop's profile in the global market, is still a cause for concern. Primary Industries Minister Teresa Kok Suh Sim said up to June 30, only 2.45 million hectares, or 42 per cent of the 5.85 million hectares of planted areas in the country, had obtained the certification. This comprised 2.1 million hectares of plantation estates, 386,000 hectares managed by smallholders and 244 palm oil mills. "Palm oil without MSPO certification would be rejected by factories, especially those bound for export markets, and regarded as second-class palm oil beginning next year,” she told a press conference in an MSPO briefing to oil palm growers in Perak state Tuesday. She said 124 of the 162 sustainable palm oil clusters (SPOC) nationwide had obtained MSPO certification, involving the participation of 12,000 individual smallholders with 46,000 hectares, as of June 30. As for Perak specifically, she said 15 of the 23 SPOC had gotten the MSPO certification involving 1,830 individual smallholders with 4,778 hectares. However, she said, the number was still low as it only represented 3.7 per cent of the total planted area of individual smallholders in the country which spanned 128,000 hectares. She attributed the low adoption of MSPO certification among smallholders to concerns over possible tax charges by the Inland Revenue Board, besides deliberately delays in implementation due to the cost factor. "There is no need for concern as the government is providing full assistance to the individual smallholders to implement the MSPO certification, covering costs which include the fees for certification and related training,” she said. She said smallholders who did not obtain the MSPO certification by year-end would not enjoy the government incentives and would not be allowed to sell palm oil at higher prices in line with the better prices forecast for next year. Meanwhile, Kok said she had written to the Education Minister Dr Maszlee Malik to include the nutritional benefits of palm oil in the school syllabus. “He has agreed to look into it as every year a review is done,” she said. Kok also said her ministry was waiting for the decision by the Finance Ministry on the loan scheme to aid smallholders for the replanting of oil palm. -- BERNAMA