The Roundtable on Sustainable Palm Oil (RSPO), Asia School of Business (ASB), and the National Association of Smallholders (NASH) have signed a Memorandum of Understanding (MoU) to support Malaysia’s smallholders. This collaboration focuses on training, digital readiness, and sustainable financing to strengthen the resilience of smallholders in the face of ageing plantations and evolving global trade expectations.
Malaysia’s smallholder sector is at a critical juncture, with over half of the smallholder-owned oil palms exceeding 25 years of age and an ageing farmer population. These factors, coupled with new global trade regulations like the EU Deforestation Regulation, are increasing the pressure on productivity and sustainability standards.
The partnership aims to provide smallholders with the tools needed to navigate these challenges and meet both RSPO and national certification standards. These certifications are crucial for maintaining Malaysia’s reputation in sustainable palm oil production on the global stage.
Guntur Cahyo Prabowo of RSPO, Dr. Melati Nungsari of ASB, and Adzmi bin Hassan of NASH were present at the MoU signing. They emphasised the importance of this initiative in bridging the gap between compliance and competitiveness for smallholders. The collaboration is expected to create practical pathways for smallholders to enhance their operations and align with international sustainability benchmarks.
This initiative marks a significant step towards empowering smallholders and ensuring the long-term sustainability of Malaysia’s palm oil industry. The focus on training and digital tools aims to equip farmers with the skills necessary to adapt to changing market demands and environmental standards.
