Oil palm estates of more than 40.47 hectares and palm oil mills that fail to obtain the Malaysian Sustainable Palm Oil (MSPO) certification will be fined and penalised under the Malaysian Palm Oil Board (Licensing) 2005 regulation number 15. 

This also includes oil palm estates that begin the process of the certification on Jan 1, 2020.

In a statement, the Malaysian Palm Oil Board (MPOB) said failure to comply with the regulation will enable MPOB to penalise, suspend, cancel or not renew licences under the provision of the regulation.

The MSPO certification will be mandatory from Jan 1, 2020, in line with the government's announcement on Feb 24, 2017.

The mandatory implementation aims to enhance the image of the country's palm oil in terms of sustainability while fulfilling the demand for certified palm oil in global markets beginning in 2020.

Up to Aug 31, 2019, 2.96 million hectares or 50.6 per cent of the total 5.85 million hectares of oil palm plantations including smallholders have been certified.

Meanwhile, 288 palm oil mills or 64.29 per cent of the total 448 mills have been certified.

All smallholders, estates and palm oil mills that have not obtained the MSPO certification or begun the process of certification are urged to get the certification right away.

To begin the process of MSPO certification, smallholders can contact MPOB centre for sustainability standards & certification at 03-89110179/0180/0182/0193.

Estates and palm oil mills, meanwhile, may contact the Malaysian Palm Oil Certification Council at 03-21810192.

The government has allocated an MSPO incentive fund to lessen the burden borne by the palm oil industry players in meeting the requirements of the MSPO certification.

Only those who successfully obtain the certification or begin the process of certification before Jan 1, 2020, are eligible for the incentives.

Beginning in 2020, all certification costs would have to be borne by the industry players themselves without government incentives.

- Bernama