PLANTATION and Commodities Minister Datuk Seri Johari Abdul Ghani is urging industry players to integrate their data into the Malaysian Palm Oil Board (MPOB) Sawit Intelligent Management System (SIMS), allowing for seamless verification and compliance with international standards.
“This step will capture data from all levels, ensuring compliance with global sustainability standards, including the European Union Deforestation Regulation (EUDR),” he said at a press conference on Jan 7.
The system stems from MPOB’s collaboration with FGV Holdings Bhd to enhance traceability and promote sustainability within Malaysia’s palm oil sector.
It seeks to integrate data across all stakeholders, from large corporations to smallholders, using advanced systems like MPOB’s SIMS.
Highlighting the importance of traceability, he noted that sustainability is now a critical demand in the global market, particularly in developed countries.
With 5,700,000ha of palm oil plantations nationwide — 1.5 million managed by smallholders — ensuring sustainability is key to accessing premium international markets.
The collaboration focuses on three main goals to improve Malaysia’s palm oil industry. It ensures compliance with global standards like the EUDR by banning palm oil cultivation in forested areas after 2020.
It also promotes the use of geolocation and traceability systems to verify plantation activities and meet export requirements.
Lastly, it aims to involve large companies and smallholders in following sustainability practices for a more responsible supply chain.
Johari added that failure to meet these demands could limit Malaysia’s ability to export its products, potentially confining them to the domestic market.
“This initiative ensures that every company, whether large or small, contributes to a sustainable supply chain. It is vital for maintaining Malaysia’s position as a leading exporter of palm oil,” he said.
The partnership also underscores collaboration between government and private entities like FGV, which sources fruits from over 1,500 smallholders through sustainability programmes in 2024 and plans to expand these efforts in 2025.
Source: The Malaysian Reserve
