KUALA LUMPUR: The possible European Union (EU) acknowledgment of Malaysian Sustainable Palm Oil (MSPO) will safeguard smallholders from marginalisation, Datametrics Research and Information Centre (DARE) said.
DARE managing director Pankaj Kumar said this is given that locally-produced palm oil-based products will be spared from extra audits.
Pankaj added that this will enhance the Malaysian economy by broadening market access and advocating for sustainable practices.
Deputy Prime Minister Datuk Seri Fadillah Yusof recently said Malaysia eas making progress towards obtaining acknowledgement from the EU for its MSPO certification scheme.
The EU acknowledgment is expected to come by June this year, marking a crucial move forward in validating Malaysia's commitment to sustainable palm oil practices.
"For decades, palm oil has been a cornerstone of economic growth, contributing significantly to the gross domestic product of producing countries and providing employment opportunities across the value chain," Pankaj said.
"Palm oil's versatility and efficiency in production have established it as a crucial element in a wide range of sectors, from biofuels and industrial manufacturing to cosmetics and beyond.
"Embracing sustainable practices in palm oil production is not just an environmental imperative but a strategic economic move as well," he added.
Pankaj highlighted that the potential acknowledgment places the Malaysian palm oil sector in a better position to meet global demands efficiently, thereby promoting economic resilience and fair distribution of benefits.
He also emphasised that through appropriate regulation and sustainable practices, we can tackle crucial issues such as soil degradation while strengthening economic stability and advancement.
"DARE remains optimistic about the positive impact of these developments, anticipating that the EU's recognition of MSPO will not only elevate Malaysia's standing in the global palm oil industry but also foster economic growth and sustainability," he added.