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POINTERS 2014 MPOC
Palm Oil Internet Seminar
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2016 Market Direction - Twists and Turns of Palm Oil Prices:
Malaysian Sustainable Palm Oil (MSPO) Certification Guidelines and Updates
By: Dr. Ainie Kuntom, Dr. Tan Yew Ai, Dr. A. Kushairi & Datuk Dr. Choo Yuen May

Senior Research Fellow Product Development & Technical Advisory Division, Sustainability, Conservation and Certification Unit, Malaysian Palm Oil Board (MPOB) Area of Expertise: Organic chemistry, Analytical chemistry, Flavour chemistry Academic Qualification: Sarjana Kimia (Dra), Bandung Institute of Technology, Bandung, Indonesia. Ph.D. Organic Chemistry, State University of Ghent, Ghent, Belgium Work experience: i. Lecturer at School of Chemical Sciences, Univesity of Science Malaysia. ii. Principal Research Officer at Malaysian Palm Oil Board (MPOB) iii. Senior Research Fellow at Malaysian Palm Oil Board (MPOB)
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Malaysian Sustainable Palm Oil (MSPO) has been gazetted as Malaysian Standard (MS) on the 5th September 2013 and launched by YAB Deputy Prime Minister on 19 November 2013. With the launching of the standard, the draft certification scheme was tested at the plantations, smallholders and mills in 2014. During the pilot run, seven premises from each sector – plantation, smallholder and mill – participated with a total of 21 premises involved. The area of plantation and smallholder certified under MSPO schemes was 18950 ha, and number of mills was four. In the same year, 2014, YB Minister of MPIC announced that the implementation of MSPO would be on 1st January 2015. Since then, the certified areas for plantations and smallholdings has reached 111,451.46ha, while the number of mills certified under MSPO is now 14 with CPO production of 362,430.46 tonne and palm kernel of 79,549.50 tonne. This presentation will describe the MSPO certification procedure and activities related to MSPO.


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Questions & Answers (8) :
Mohamad Raid Majzoub
1 year ago
Dear Dr. Ainie Kuntom, Thank you for your useful presentation. Is it possible for the manufacturers of finished PO products and packers to place MSPO logo on their product if they sourced MSPO certified Palm Oil , do they need any audit or simply adding the logo?
Ainie Kuntom:
Dear Mr M Raid, Yes you need to be audited too to use the logo.
1 year ago
Ainie Kuntom
1 year ago
Dear Mr Kazmi, the cost is less than RM10/ha based on our pilot run. You can factored in the cost of certification into your selling price, the choice is your company because there is no premium on MSPO certified palm oil. The price will be based on demand/supply of the normal palm oil.
Kazmi:
Thanks Dr. Ainie
1 year ago
Ainie Kuntom
1 year ago
Thank you En M Jaaffar. Yes trades of palm oil globally is based on willing buyer willing seller basis. Our interaction with various government agencies on market of MSPO is to give the buyer the choice to choose the type of sustainably certified palm oil. MSPO certified palm oil is another option for the buyer. It is also voluntary.
Mohammad Jaaffar Ahmad
1 year ago
Thank you Dr. Ainie. Currently all trades of palm oil globally is based on willing buyer willing seller basis. Why the Malaysian Govt. is negotiating with various government agencies in various countries for market acceptance of MSPO? Shouldn\'t we leave the market forces to decide on their preferred products? Have we learnt anything from the mandatory requirements and market acceptance of ISPO? TQ
Kazmi
1 year ago
Thanks Dr. Ainie. Can help to enlighten us on the cost of obtain certified MSPO in term of per tonne or per hectare basis? Are producers allow or justify to factor in their additional costs in MSPO selling prices? Will the prices of certified MSPO will be based on the demand/supply parameters at marketplace? Regards and thank you
Norhaznita Husin
1 year ago
Hi Dr.Ainie I have two questions: 1. In the recent years, sustainability has become an access issue into certain markets especially in the USA and Europe. By securing both international (RSPO) and national (MSPO) certifications, do you think it will enhance the access to the international market and ensure a good recognition for the company? 2. Currently, MSPO affiliation is on a voluntary basis. Do MPOB / Ministry have any intention to make it mandatory to all in the industry?
Dr. Ainie Kuntom:
1. Yes by having both it will enhance the company access into the global markets. We are in the midst of negotiating with various government agencies in various countries for market acceptance of our MSPO. 2. MSPO may be mandatory and it is only a matter of time.
1 year ago
Norhaznita Husin:
Thank you so much Dr. Ainie for your comment and useful presentation.
1 year ago
Steffen Preusser
1 year ago
Thank you for your presentation, Dr Kuntom! I have two questions: 1) What the key differences (advantages) between MSPO and other existing certification schemes such as ISCC and RSPO? 2) For which segment of the palm oil market was MSPO developed? Best regards, Steffen
Dr. Ainie Kuntom:
Difference: i) Standard development MSPO - National standard (7 principles) RSPO - Business – to – business initiative. (8 principles) ii) Deforestation MSPO - Subject to approval by local authority. Only land gazetted as agricultural land RSPO - No deforestation iii) Green house gas MSPO - Inventory of sources of GHG emissions and reduction of emission RSPO - Plan to reduce emissions. RSPO-Plus includes the GHG through the supply chain iv) Water management on peat land MSPO - Maintain water table of 30-50 cm from the surface RSPO - Maintain water table at 40-60 cm from the surface v) New development (peat land) MSPO - Compliance to local authority RSPO - Can plant in new areas but must measure the carbon stock
1 year ago
Dr. Ainie Kuntom:
It is for all markets and currently it is for CPO and palm oil for biofuel.
1 year ago
Steffen Preusser
1 year ago
Thank you for your presentation, Dr Kuntom! I have two questions: 1) What the key differences (advantages) between MSPO and other existing certification schemes such as ISCC and RSPO? 2) For which segment of the palm oil market was MSPO developed? Best regards, Steffen
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