22 April – Malaysia is taking bold steps to strengthen the sustainability and global credibility of its palm oil industry through a landmark collaboration between Nestlé Malaysia and the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme, alongside the formation of a new multi-stakeholder alliance.
The twin developments—an MoU signed by Nestlé Malaysia and MSPO, and the establishment of the MSPO Impact Alliance—signal a unified national effort to elevate the MSPO standard to meet and exceed global sustainability benchmarks, while prioritizing the inclusion of smallholders.
A Strategic Collaboration for Responsible Sourcing
The Memorandum of Understanding (MoU), signed on April 18, 2025, aims to elevate responsible sourcing, boost traceability, and deliver inclusive certification pathways for smallholders. It was witnessed by YB Datuk Seri Johari Abdul Ghani, Minister of Plantation and Commodities.
“This collaboration reflects more than a signed agreement—it brings together shared values and strengths to advance sustainable development,” he said. “Nestlé Malaysia has shown global leadership in responsible sourcing, and MSPO ensures accessibility and accountability across all levels of the supply chain, including smallholders.”
Nestlé Malaysia, which has already achieved 100% deforestation-free and RSPO-certified palm oil sourcing, will work closely with MSPO to:
- Strengthen supply chain mapping
- Provide training and certification support for smallholders
- Align procurement practices with global ESG expectations
Launching the MSPO Impact Alliance
Complementing the MoU is the establishment of the MSPO Impact Alliance, a pioneering multi-stakeholder platform aimed at developing innovative sustainability solutions. Founding members include Nestlé Malaysia and other stakeholders from the public and private sectors, NGOs, and farmer cooperatives.
This alliance will pilot projects that include:
- Green financing for certified producers
- Digitized traceability systems
- Deforestation monitoring tools
- Inclusive sourcing incentives for smallholders
En. Haris Arshad, Chairman of MSPO, highlighted, “This is not just a national move—it’s a strategic bridge to meet international expectations. Collaborating with global players like Nestlé ensures MSPO’s relevance, credibility, and inclusiveness in a competitive global market.”
Aligning with Global Standards Through MSPO 2.0
Both the MoU and the alliance support the rollout of the MSPO Strategic Plan 2024–2026, including the launch of MSPO 2.0 effective from 1 January 2025. The upgraded certification introduces:
- Social Impact Assessments
- Greenhouse gas emissions reporting
- Deforestation cut-off dates
- ILO-aligned labour indicators
- Full traceability requirements aligned with the EU Deforestation Regulation (EUDR)
These measures reinforce Malaysia’s position as a global leader in sustainable palm oil and ensure MSPO remains responsive to evolving international benchmarks.
A Future-Focused Approach
The combined initiatives mark a shift from traditional compliance to proactive ESG stewardship. By engaging industry leaders, empowering smallholders, and strengthening sustainability infrastructure, Malaysia is building a more transparent, resilient, and inclusive palm oil ecosystem.
Nestlé Malaysia’s Chief Executive Officer, Mr. Juan Aranols, summarized the impact: “Sustainability is at the heart of how we do business. This partnership strengthens our connection with local producers, benefits the environment, and ensures long-term value for communities and global consumers alike.”
Source:
New Straits Times – New Multi-Stakeholder Alliance Being Set Up to Boost Value of MSPO
