Workers rights protected under MSPO scheme but cultural challenges present, says MPOCC in face of US ban against FGV

Sunday 18 May 2025

KUALA LUMPUR (Oct 2): The Malaysian Palm Oil Certification Council says there are clear and strong requirements on workers' rights and safety under the Malaysian Sustainable Palm Oil Certification scheme, which is mandatory across the board for industry players, and that no forms of forced or trafficked labour are allowed.

All MSPO certificate holders must also abide by Malaysian laws and regulations, which include the Immigration Act 670 and the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007, said Chew Jit Seng, the chief executive officer of the independent non-profit organisation that was set up in 2014 to develop and oversee the MSPO scheme, in a statement today.

Expressing "great concern" over the recent US ban on the imports of palm oil from FGV Holdings Bhd over forced labour allegations, he said the independent certification bodies (CBs) which certified the affected entity will have to investigate the issue, and that any violations found of the principles and criteria of the MPSO certification scheme may result in the certification being suspended or revoked.

MPOCC is an independent non-profit organisation established in 2014 to develop and operate the MSPO scheme. According to MPOCC's website, CBs, accredited by the Department of Standards Malaysia, conduct audits on palm oil industry players against the requirements of the MSPO standards and award the MSPO certificates to the successful applicant.

Chew, however, highlighted that it is a cultural norm in rural Asian communities, including Malaysia's, for children to accompany their parents or guardians to work in the agricultural sector during off-school hours, for social safety reasons.

This, he said, is particularly so if both parents work at the same time and place. "In this circumstance, they may wish to help their parents pick some loose fruits. This shall not be misconstrued as forced or child labour, which is not allowed under the Employment Act 1955 and further stipulated in Act 370 (Immigration Act)," he said.

An outright ban on palm oil imports, he further said, will not just penalise and hurt the entity involved but also the livelihood of smallholders and settlers who work hard to provide for their family.

"A more holistic solution would be for the concerned stakeholders to engage with the industry players and regulatory agencies to follow through on the issues raised and to seek realistic and sustainable solutions," it said, adding it will continue to monitor the development of these allegations, and help seek strategic solutions to tackle labour issues of the palm oil industry.

Edited ByTan Choe Choe

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