In Malaysia, palm oil major Felda Global Ventures Holdings Berhad (FGV) and the Malaysian Palm Oil Board (MPOB) have signed a Memorandum of Collaboration (MoC) marking "another pivotal moment in the relationship between corporate and government, underscoring the critical importance of such partnerships in advancing national progress."
Witnessed by YB Datuk Seri Johari Abdul Ghani, Minister of Plantation and Commodities of Malaysia, the MoC is structured around three key pillars that will drive this transformation:
- First, empowering smallholders, whose success is fundamental to the growth and stability of the industry;
- Second, ensuring full compliance with sustainability standards, securing a greener and more responsible future for palm oil production; and
- Third, revolutionizing the palm oil industry through the adoption of cutting-edge technologies that will enhance productivity and efficiency.
Ensure EUDR compliance
Under this collaboration, FGV and MPOB will explore the potential whereby FGV through its subsidiary will assist MPOB to enhance the effectiveness and usability of existing MPOB platforms, such as GeoPALM and the Sawit Intelligent Management System (SIMS).
This will involve integrating advanced technologies, including geolocation mapping, data verification, blockchain for traceability, and tools for data analysis and decision-making.
By eliminating discrepancies and enhancing transparency, this initiative will strengthen traceability across the palm oil supply chain, ensuring compliance with increasingly stringent global regulations, including the European Union Deforestation Regulation (EUDR).
Through this partnership and its strategic objectives, we will continue to reshape the future of Malaysia’s palm oil sector, strengthening both the economy and global standing. This is a significant step in our journey towards a sustainable and transparent palm oil industry in Malaysia, said Tan Sri Rastam, Chairman of FGV.
Support sustainable palm oil production
Another key focus of the MoC is empowering smallholders to actively participate in sustainable palm oil production.
Through joint initiatives, FGV and MPOB aim to raise awareness and support smallholders in complying with the Malaysian Sustainable Palm Oil (MSPO) standards and EUDR requirements, which will enhance smallholders’ competitiveness and facilitate their access to the palm oil premium markets.
Additionally, the partnership will introduce the ‘Kebun Angkat’ initiative, a program designed to provide a selected group of smallholders with appropriate technical assistance and guidance on good agricultural practices.
While this initiative highlights the partnerships’ commitment to supporting smallholders, its greater significance lies in the opportunities it offers for them to improve their productivity, thereby enhancing their standard of living and livelihoods.
Aligned with FGV’s Sustainability Framework, we are deeply committed to uplifting the livelihoods of smallholders, who form the backbone of our nation’s palm oil industry. By collaborating with MPOB, we are not only advancing traceability systems to meet global standards but also equipping smallholders with the tools and knowledge needed to thrive in an increasingly competitive market. Together, we are forging a more inclusive, sustainable, and resilient palm oil sector, Tan Sri Rastam said.
Collaboration enhances transparency
Through geospatial data integration, smallholders, industry players, and policymakers will gain access to relevant information to ensure compliance with established standards.
This will directly enhance the global credibility of Malaysian palm oil, and this partnership between FGV and MPOB reflects a shared commitment to driving innovation and addressing critical challenges in the palm oil industry.
By fostering collaboration among government agencies, industry players, and smallholders, this initiative paves the way for a more sustainable and transparent future for Malaysian palm oil.
The strategic collaboration between MPOB and FGV will primarily focus on enhancing the transparency of data and polygon mapping information through the GeoPALM portal, compliance with international standards, improving operational efficiency through more accurate data analysis, boosting the competitiveness of independent smallholders, mitigating environmental pollution risks, and increasing crop yields to further strengthening the position of Malaysian palm oil in the international market, said Datuk Mohamad Helmy Othman Basha, Chairman of MPOB.
Support efforts to address palm oil challenges
FGV also reaffirmed its support for the government’s efforts to address global challenges, including anti-palm oil campaigns, to ensure that Malaysia’s palm oil industry continues to grow and remains competitive on the global stage.
FGV’s unique business model blends commercial objectives with social responsibility.
As Malaysia’s largest off-taker of smallholders’ Fresh Fruit Bunches (FFB), FGV sourced nearly two-thirds of its FFB supply, approximately 4.5 million tonnes from FELDA settlers and independent smallholders at market prices.
This, emphasises the Group’s continued commitment to supporting smallholders’ communities.
In 2024, FGV engaged over 1,500 smallholders through sustainability programs focusing on raising awareness of compliance and certification standards while addressing land management challenges.
Building on this momentum, FGV aims to further expand these efforts in 2025.
With the right policy support, advanced technologies, and strong collaboration, we are confident that this sector will thrive and uplift the livelihoods of smallholders. FGV remains committed to working closely with the government to position Malaysia as a leader in sustainable and resilient palm oil production, ended Tan Sri Rastam.
