EU'S resolution hits 650,000 oil palm smallholders - MPOB

The European Union's decision to ban the import of palm oil from Malaysia is seen as threatening the future of 650,000 smallholders in the industry apart from its negative impact to the country's economy.

Malaysian Palm Oil Board chairman Ahmad Hamzah said this was because Malaysia is the largest exporter of the commodity in the world and EU is the second largest export market of the country which contributes the highest export revenue.

“The resolution will give a major impact to Malaysia not only to its economy and threaten the livelihood of oil palm growers who depended on the export revenue.

"The proposal has indirectly affected the credibility of the country as the largest producer of palm oil in the world,” he told reporters after a ‘Back to School’ programme organised by Felcra Berhad in Asin today.

At the ceremony, Felcra Berhad presented school supplies worth RM250 each set to 300 secondary and primary school students in Jasin parliamentary constituency which was also attended by Felcra Berhad central region general manager Ahmad Salleh.

Ahmad said the government would continue to discuss with EU representatives to block the resolution which had been approved at the European Parliament level.

According to him, in principle, the Malaysian representative participating in the negotiation had succeeded in proving Malaysia's high-quality palm oil produce, especially from the health aspect.

He said EU representatives were also urged to carry out further investigations on the quality of Malaysia's palm oil and not to listen to certain unethical quarters in the business.

In this regard, Ahmad said all oil palm smallholders had been reminded to obtain the Malaysian Sustainability Palm Oil (MSPO) certification as one of the latest measures to upgrade the industry at global level.

He said the certification was important in the government's efforts to expand the export market of palm oil to other countries apart from maintaining its existing markets.

"Possession of MSPO is mandatory for oil palm smallholders by 2020 as the certificate was part of the market requirement apart from proving our capability to produce quality palm oil,” he said.

- Bernama