KUALA LUMPUR (Jan 7): Agribusiness firm FGV Holdings Bhd (KL:FGV) has signed an agreement with the Malaysian Palm Oil Board (MPOB), to increase awareness and provide comprehensive support to independent smallholders in meeting global sustainability standards and regulations.

The collaboration aims to assist smallholders in achieving compliance with the Malaysian Sustainable Palm Oil (MSPO) standards and the European Union Deforestation Regulation (EUDR) requirements, according to both parties during the signing ceremony here on Tuesday.

These efforts are expected to enhance the competitiveness of smallholders and facilitate their access to premium palm oil markets, both parties noted.

As of November 2024, data from MSPO indicates that the number of independent smallholders that MSPO certified stood at 80% and 87% for estate smallholders.

MSPO chief executive officer Hafizin Tajudin further explained that EUDR is not a certification, it is a regulation.

"Based on a body of evidence, we can conclude that all MSPO certified entities are on track to meet EUDR requirements," he said.

Meanwhile, under the FGV-MPOB collaboration, both parties will explore the potential whereby FGV, through its subsidiary, will assist MPOB to enhance the effectiveness and usability of existing MPOB platforms, such as GeoPALM and the Sawit Intelligent Management System.

It noted that the initiative will integrate advanced technologies such as geolocation mapping, data verification, blockchain for traceability, and analytical tools to support informed decision-making, MPOB and FGV said in a joint statement ahead of the signing ceremony.  

The agreement also introduces the ‘Kebun Angkat’ programme, designed to provide selected smallholders with technical assistance and guidance on good agricultural practices.

FGV chairman Tan Sri Rastam Isa highlighted the collaboration’s dual focus on advancing traceability systems and equipping smallholders with the necessary tools and knowledge to compete in an increasingly demanding market.

“With the right policy support, advanced technologies, and strong collaboration, we are confident that this sector will thrive and uplift the livelihoods of smallholders. FGV remains committed to working closely with the government to position Malaysia as a leader in sustainable and resilient palm oil production,” Rastam added.

Meanwhile, MPOB chairman Datuk Mohamad Helmy Othman Basha emphasised the collaboration’s role in enhancing data transparency and polygon mapping information through the GeoPALM portal.

“The strategic collaboration between MPOB and FGV will primarily focus on enhancing transparency of data and polygon mapping information through the GeoPALM portal, compliance with international standards, improving operational efficiency through more accurate data analysis, boosting the competitiveness of independent smallholders, mitigating environmental pollution risks, and increasing crop yields to further strengthen the position of Malaysian palm oil in the international market,” Mohamad Helmy said.

While the exact number of smallholders targeted for support wasn't specified, it's known that Malaysia has over 300,000 oil palm smallholder farmers.

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