Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani
KUALA LUMPUR: FGV Holdings Bhd
(FGV) and the Malaysian Palm Oil Board (MPOB) have forged a strategic partnership through a memorandum of collaboration (MoC) to enhance traceability and empower smallholders.
The MoC is structured around three key pillars that will drive the 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, revolutionising the palm oil industry through the adoption of cutting-edge technologies that will enhance productivity and efficiency.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said under this collaboration, 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.
"We are witnessing a collaboration between MPOB and FGV on how we implement steps to capture data from smallholders, particularly to be included in the database managed by MPOB in SIMS.
"What FGV is doing today is adding in terms of traceability within the FGV company,” he told reporters after witnessing the signing of the MoC here today.
The document was signed by FGV chairman Tan Sri Rastam Mohd Isa, FGV group chief executive officer Fakhrunniam Othman, MPOB chairman Datuk Mohamad Helmy Othman Basha, and MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir.
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).
Rastam said through this partnership, the company will continue to reshape the future of Malaysia’s palm oil sector, strengthening both the economy and global standing.
"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,” he said.
Meanwhile, Mohamad Helmy said the collaboration will primarily focus on enhancing the transparency of data and polygon mapping information through the GeoPALM portal and compliance with international standards.
It also focuses on improving operational efficiency through more accurate data analysis, boosting the competitiveness of independent smallholders, mitigating environmental pollution risks, and increasing crop yields to strengthen the position of Malaysian palm oil in the international market.
Through geospatial data integration, smallholders, industry players, and policymakers will gain access to relevant information to ensure compliance with established standards which will directly enhance the global credibility of Malaysian palm oil.
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.
In 2024, FGV engaged over 1,500 smallholders through sustainability programmes focusing on raising awareness of compliance and certification standards while addressing land management challenges.
FGV aims to expand these efforts in 2025. - Bernama
