TRANSFORMATION OF OIL PALM INDEPENDENT SMALLHOLDERS THROUGH MALAYSIAN SUSTAINABLE PALM OIL

Malaysian Sustainable Palm Oil (MSPO) is the national standard in Malaysia which seeks to promote sustainability of the oil palm industry. It was launched in 2013 and the implementation of the certification scheme started in 2015 on a voluntary basis. The targeted mandatory implementation for the whole industry is 31 December 2019 with effect on the 1 January 2020. With the mandatory implementation of MSPO, the industries have prioritised their commitment towards sustainability, including smallholders. In Malaysia, independent smallholders play a vital role in the palm oil industry and occupy over 16% of total oil palm land area. this article looked at the transformation of independent smallholders based on an amended conceptual transformation model developed and review from some of the MSPO audit findings among the independent smallholders. It was observed that there is an enhancement in the three elements of sustainability which are environment, social and economy among the smallholders through implementation of MSPO, thus, suggesting further strengthening the transformation of the smallholders by improving the management system of the smallholders.