The European Forest Institute (EFI) and the Malaysian Sustainable Palm Oil (MSPO) certification have inked a strategic cooperation agreement to strengthen sustainability, reinforce traceability, and ensure that Malaysian palm oil remains a trusted choice in global sustainable trade.
The Memorandum of Cooperation between the two organisations , signed by EFI Director Dr Robert Mavsar and MSPO Chief Executive Officer Hafizin Tajudin, will focus on developing systems that ensure deforestation-free supply chains, with particular emphasis on integrating smallholder producers and fresh fruit bunch dealers. By combining EFI’s scientific and international expertise with MSPO’s credible and inclusive national standard, the cooperation sets a new benchmark for future-ready supply chains that are inclusive, deforestation-free, responsible, and trusted by global markets.
The partnership will focus on three areas. It will advance policy analysis and development that supports resilient, sustainable commodity strategies. It will deliver technical systems that reinforce traceability and legality so supply chains can uphold integrity from plantation to port. It will also accelerate knowledge exchange and innovation through pilots, comparative studies and international learning platforms that translate commitments into measurable outcomes.
This collaboration will explore initiatives to advance smallholder and Fresh Fruit Bunch dealers integration pilots through digital onboarding and group compliance models, ensuring that Malaysian smallholders remain fully connected to premium markets. EFI and MSPO will also explore how MSPO’s traceability system, which already captures geolocation, legality and sustainability data from plantation to point of export can support EU operators’ compliance with the EUDR.
Hafizin Tajudin said:
“This partnership is not about the EUDR alone; it is about ensuring that MSPO is future-ready for any global requirement. By working with EFI, we will draw on international expertise to strengthen MSPO’s traceability system, enhance data integrity, and advance inclusive compliance models. These efforts will position Malaysian palm oil to meet evolving global regulations and rising consumer demand for sustainable, deforestation-free, and responsibly sourced products — placing Malaysia at the forefront of the global debate on sustainable commodities, with EFI’s practical support being deeply valued.”
Dr Mavsar added:
“We commend MSPO for the transparent way in which it is continually reviewing and improving its control systems. Malaysia’s experience with mandatory, government-led sustainability standards is being noticed by other producer countries.”
Both leaders agreed that the Memorandum of Cooperation marks an important step in ensuring that Malaysian palm oil continues to meet the rising sustainability expectations of global consumers while protecting the world’s forests.
The partnership builds on technical analysis carried out under the EU-funded KAMI project in 2024 and will now continue under the EU-funded Malaysia Smallholder Project, supervised by the Ministry of Plantation and Commodities together with the EU Delegations in Kuala Lumpur and Bangkok. Through the KAMI project, EFI and MSPO reviewed how the MSPO certification system supports the EU’s deforestation-free requirements while also identifying areas for further enhancement.
About Malaysian Sustainable Palm Oil (MSPO)
The Malaysian Sustainable Palm Oil (MSPO) Certification Scheme is Malaysia’s national sustainability standard covering the entire palm oil supply chain including smallholders, estates, dealers, mills and refiners. MSPO ensures traceability from plantation to final product, guarantees deforestation free production and embeds environmental protection, fair labour practices and circular economy principles. Built on inclusivity, it enables every player, especially smallholders, to participate in and benefit from sustainable palm oil trade. As of 31 August 2025, approximately 92 percent of the Malaysian palm oil sector is certified under MSPO.
Building on this foundation, the MSPO Impact Alliance was launched in September 2025 to bring together growers, processors, FMCG companies, financial institutions, international organisations and civil society to strengthen sustainability practices and drive continuous improvement. MSPO is also recognised internationally, being listed on the Standards Map of the International Trade Centre (ITC), a joint agency of the World Trade Organization (WTO) and the United Nations (UN).
