BY FARISHA RAHMAN

This milestone not only marks a diplomatic achievement but also highlights Malaysia’ s firm commitment to sustainable agricommodity trade, the empowerment of smallholders, and climate resilience.

The FACT Dialogue, established at the 26th United Nations Climate Change Conference( COP26) in Glasgow in 2021, brings together 28 major producer and consumer countries of agricultural commodities.

These include palm oil, cocoa, timber, beef, and soy. The platform aims to strike a balance between economic development and environmental protection through collaboration across four key pillars.

These pillars are Trade and Market Development, Smallholder Support, Traceability and Transparency, and Research and Innovation.

Building on Indonesia’ s success, Malaysia is strengthening its position as a leader in sustainable trade, with a strong emphasis on supporting smallholders who manage

approximately 1.5 million hectares of oil palm in the country.

MSPO 2.0

Under the guidance of Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, Malaysia is strengthening its sustainability frameworks.

One of the key initiatives is the updated Malaysian Sustainable Palm Oil( MSPO) 2.0 certification, which has been refined to meet international expectations, particularly the European Union Deforestation Regulation( EUDR).

Johari emphasised that MSPO 2.0 is not merely a certification but 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 said.

The MSPO 2.0 certification has recently been recognised on the International Trade Centre’ s Standards Map. This global recognition boosts Malaysia’ s credibility and reinforces its leadership in sustainable palm oil production.

FACT 2025 FORUM

Malaysia hosted the FACT Forum 2025 from Apr 14-17 in Putrajaya, under the theme“ Enhancing Support for Smallholder Farmers”.

The forum brought together policymakers, industry leaders,

EMPOWERING SMALLHOLDERS: FACT 2025 delegates visit Pulau Carey to observe sustainable farming by MSPO-certifies smallholders.

and smallholder representatives to develop inclusive and actionable strategies for a sustainable commodity supply chain.

The programme featured bilateral meetings with the United Kingdom, field visits to Pulau Carey to engage directly with MSPO-certified smallholders, including the Mah Meri Indigenous community, and a series of knowledge-sharing sessions.

These discussions focused on access to financing, land tenure security, and digital traceability solutions.

Johari highlighted the importance of ensuring smallholders are not excluded from global sustainability efforts.

“ With the right support, smallholders can adopt better agricultural practices, gain certification, and ultimately increase their yields and incomes,” he stated.

POLICY ALIGNMENT

Malaysia’ s role in the FACT Dialogue aligns with the country’ s National Agricommodity Policy 2021-2030( DAKN2030), which integrates sustainability, inclusivity, and prosperity.

The policy supports Malaysia’ s ambition to become a global leader in sustainable commodity production while ensuring that all stakeholders benefit fairly.

Beyond palm oil, Malaysia is advocating for wider international recognition of its other national certifications. These include the Malaysian Sustainable Natural Rubber( MSNR) and the Malaysian Timber Certification Scheme( MTCS), which demonstrate a comprehensive, government-led approach to responsible production and management.

GLOBAL COMMITMENT

The insights and outcomes from

the FACT Forum will guide Malaysia’ s engagement at the upcoming COP30. With more than 50 per cent of its land area covered in forests and a target to achieve net-zero emissions by 2050, Malaysia considers sustainable agricommodities a key pillar of its national climate strategy.

Unlike the regulatory-heavy approach of the EUDR, the FACT Dialogue promotes cooperation and shared goals. This allows developing nations to participate in global sustainability efforts without being disadvantaged by systemic inequalities.

Kerry McCarthy, the United Kingdom’ s Minister for Climate, voiced strong support for Malaysia’ s leadership.

“ Developing sustainable trade should mean growth and opportunity for all, especially smallholder farmers who are the key drivers of change in the transition to sustainable food systems,” she said.

McCarthy also praised Malaysia for proving that“ economic growth does not need to come at the expense of forests or livelihoods.”

Malaysia’ s new role as co-chair of the FACT Dialogue sends a clear message to the international community. The country is poised to lead global efforts in transforming the way the world produces, certifies, and trades key agricultural commodities.

The government’ s dedication to environmental integrity, fair development, and smallholder empowerment reflects a forwardlooking strategy that others can learn from.

The FACT Dialogue is not only a platform for discussion but also a call to action. Malaysia is responding to this call with clarity, ambition, and purpose, setting a benchmark for sustainable trade in the years ahead.- @ AGROBiz