MALAYSIA TO CHAMPION SMALLHOLDER INCLUSION, SUSTAINABLE TRADE AT INAUGURAL FACT 2025 FORUM -- JOHARI

By Nurul Hanis Izmir

PUTRAJAYA, April 13 (Bernama) -- Malaysia is set to take centre stage in advancing sustainable and inclusive trade practices as it co-hosts the Forest, Agriculture, Commodity and Trade (FACT) Forum for the first time, with a strong focus on smallholders and sustainable certification, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

Speaking to Bernama ahead of the four-day event beginning April 14, he said Malaysia aims to use the platform to underscore its commitment to balancing economic growth with environmental responsibility while empowering smallholders to thrive in an increasingly regulated global market.

Johari also said the country’s role as co-chair of the FACT Forum aligns with the National Agricommodity Policy 2021–2030 (DAKN2030), which integrates sustainability, inclusivity and prosperity.

Malaysia, he said, wants to send a clear signal that the country is serious about driving sustainable trade globally while including and safeguarding the well-being of its people, particularly smallholders.

Smallholders play a crucial role in Malaysia’s agricommodity landscape, with over 1.5 million hectares, or 27 per cent, of oil palm plantations under their care.

“Smallholders are the backbone of our agricommodity sectors. Our goal is to empower them with the tools, standards, transparency and market access they need to thrive sustainably and competitively,” he said.

Malaysia Puts MSPO 2.0 in Global Spotlight

Johari said that amid increasing scrutiny from international markets, particularly the European Union (EU), Malaysia is strengthening its position through initiatives such as the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme.

“We are enhancing transparency and sustainability through MSPO 2.0, which has now been recognised in the International Trade Centre (ITC) Standards Map – the world’s largest database of sustainability standards.

“This demonstrates our compliance with global requirements and gives greater confidence in the credibility of our efforts. We are committed to meeting international expectations while ensuring fairness to smallholders by facilitating their access to global markets,” the minister emphasised.

He said the FACT Forum would be a timely platform to showcase MSPO 2.0 as a robust, internationally recognised standard that supports smallholders in adopting good agricultural practices and complying with traceability and sustainability requirements — including the EU Deforestation Regulation (EUDR).

“MSPO 2.0 is not just a certification, it’s a passport to global trade. It empowers smallholders with good agricultural practices, quality planting materials, and traceability systems that can increase yield and competitiveness — all while protecting our forests,” he shared.

The minister revealed that MSPO 2.0 will be a central topic in both bilateral and multilateral discussions throughout the FACT Forum.

“We will highlight how MSPO covers the full sustainability spectrum, and we will advocate for international recognition, especially as it is already acknowledged in the ITC Standards Map,” Johari said.

FACT Forum 2025 Marks Malaysia’s Leadership in Sustainable Agricommodity Dialogue

The ministry will be hosting the FACT Forum 2025 from April 14 to 17, under the theme “Enhancing Support for Smallholder Farmers”, at the Pulse Grande Hotel & Marina, Putrajaya.

Among the key highlights of the event are a bilateral meeting between the Malaysian and UK governments, an official opening ceremony, and a field trip to Pulau Carey to engage with MSPO-certified smallholders, including the Orang Asli Mah Meri community.

The forum will also feature ongoing discussions and knowledge exchange sessions throughout the event.

The upcoming FACT Forum 2025 will build on progress made in previous dialogues, particularly the 2024 Forum in Bali, to enhance support for smallholder farmers in transitioning to sustainable and resilient production systems.

As a crucial milestone on the road to COP30, the forum will focus on unlocking access to finance, strengthening land tenure security, and integrating smallholder farmers into global markets.

It will also emphasise gender equity and the inclusion of Indigenous Peoples and other marginalised groups. This will be achieved by adopting an integrated approach across all thematic areas of work within the FACT Dialogue, to strengthen impact, enhance cooperation to avoid duplication of efforts, and ensure that smallholder farmers take a central place in the global transition towards sustainable food systems.

Key momentum will come from the transition of FACT co-chairs, with Malaysia formally taking up its co-chair role in an official handover from the Government of Indonesia, with high-level ministerial participation from Malaysia, the United Kingdom, and Indonesia.

The FACT Dialogue, launched during COP26 in Glasgow in 2021, serves as a voluntary platform to foster international cooperation on sustainable supply chains.

It contrasts with the European Union Deforestation Regulation (EUDR), which imposes mandatory legal requirements on companies to prove that their products are deforestation-free.

There are 28 member countries of the FACT Dialogue, consisting of 14 producing countries including Malaysia, Indonesia, Brazil, Cameroon, Colombia, Ghana, Liberia and Nigeria, and 14 consuming countries namely the United Kingdom, Belgium, Canada, Denmark, France, Italy, Germany, the European Union, the United States and Japan.

While the EUDR adopts a regulatory and compliance-driven approach, FACT promotes collaborative dialogue and shared commitment — especially among developing and producing nations.

-- BERNAMA