By Sharen Kaur - June 13, 2025
KUALA LUMPUR: Malaysia is stepping up efforts to position itself as a global leader in sustainable commodity certification through the implementation of MSPO 2.0, the enhanced standard under the Malaysian Sustainable Palm Oil (MSPO) scheme.
Sustainability is no longer an option in trade; it is a prerequisite, Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani said, noting that MSPO 2.0 is a clear signal of the country's commitment to transforming the commodity sector in line with global expectations.
"We are embedding sustainability at every level, from smallholder farms to export shelves, and raising the integrity of our entire ecosystem. Not only that, we aim for that MPSO model to be replicated across all commodities," he said in a statement.
As part of this vision, MSPO 2.0 took centre stage at Expo 2025 Osaka, where the Ministry of Plantation and Commodities (KPK) highlighted Malaysia's dedication to making sustainability a cornerstone of its trade and economic diplomacy.
The initiative signals a strategic move to align Malaysia's commodity exports with growing global demand for environmentally and socially responsible sourcing.
One key focus is expanding exports of downstream and value-added palm-based products to Japan, including speciality fats, tocotrienols, red palm oil, and biomass-based medium-density fibreboard used in construction and furniture manufacturing.
To support this, the Malaysian Palm Oil Board (MPOB), the R&D and licensing agency under KPK, signed several trade agreements at Expo 2025, targeting enhanced market access for palm oil products in Japan and across Asia.
Malaysia's export credibility gained a further boost with the signing of a collaboration between MSPO and AEON Japan, aimed at improving the visibility of certified palm-based products in Japanese retail. MSPO-labelled items are already appearing on shelves, supported by Japan's Global Alliance for Sustainable Supply Chain (ASSC), whose members include major brands such as AEON, Meiji, Ajinomoto, and KAO.
The upgraded MS 2530:2022 standard introduces stricter requirements covering deforestation prevention, greenhouse gas emissions, labour rights, and high conservation value (HCV) area protection. These updates bring Malaysia's certification scheme into closer alignment with international ESG benchmarks. With 86 per cent of the national palm oil sector already certified, Malaysia is targeting 95 per cent certification by the end of 2025.
To help reach this target, the government has earmarked RM50 million under Budget 2025 to support nationwide MSPO implementation. This includes technical support, audit funding, and traceability tools, especially for independent smallholders, to ensure inclusive participation in sustainable global supply chains.
In addition to palm oil, the ministry is shining a spotlight on kenaf, an industrial crop prized for its high carbon absorption and biodegradable properties. With global demand projected to exceed US$10 billion by 2032, Malaysia is intensifying efforts to build robust sustainability and traceability frameworks for this emerging commodity.
During KPK Week at Expo 2025, five strategic memoranda of understanding (MoUs) were signed across a range of commodities, from palm biomass and sustainable pepper to kenaf innovation and cacao exports. These agreements reflect Malaysia's broader multi-commodity strategy to elevate its position as a producer of sustainable, high-value products.
Malaysia's overall presence at Expo 2025 is led by the Ministry of Investment, Trade and Industry (MITI), with over 21 ministries and 70 agencies contributing to a unified national showcase. Over the 26-week event, the Malaysia Pavilion will host forums, product demonstrations, business matching sessions, and signing ceremonies, positioning the country as a forward-looking trade and investment partner.
So far, Malaysia has achieved 68 per cent of its RM13 billion target in trade and investment leads for Expo 2025, a testament to its whole-of-government strategy that places certified sustainability, innovation, and inclusivity at the centre of its global economic diplomacy.
Source: https://www.nst.com.my/business/corporate/2025/06/1229973/johari-ghani-mspo-20-signals-malaysias-commodity-shift
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