MPOB: Palm oil boycott over haze could hurt 242,000 smallholder families

The Malaysian Palm Oil Board (MPOB) has warned that a boycott of palm oil products over the haze issue could negatively impact more than 242,000 independent oil palm smallholder families. Director-General Datuk Badrul Hisham Mohd stated that such a boycott would be an inappropriate and ineffective way to tackle the haze problem, as it would penalize responsible industry players, workers, and smallholders who depend on the sector for their livelihoods.

The MPOB director-general emphasized that calls for action should be based on facts, evidence, and a comprehensive understanding of the actual causes of the issue. He noted that the transboundary haze is a complex air pollution problem that requires coordinated action, including identifying the sources of fires, enforcing the law, regional cooperation, and targeting those responsible.

Under the Environmental Quality Act 1974, open burning is prohibited in Malaysia, and offenders must be held accountable through legal action. MPOB stressed that any action against polluters should not extend to penalizing the entire industry comprising responsible operators, workers, and smallholders. The palm oil industry in Malaysia is governed by a regulatory and certification framework, including the mandatory Malaysian Sustainable Palm Oil (MSPO) certification.

The MSPO 2.0 standards, which took effect in January 2025, strengthened requirements covering sustainability, legal compliance, environmental management, worker welfare, traceability, and responsible production practices. Malaysia's palm oil exports reached RM112 billion in 2025, up 2.9 percent from the previous year. The recognition of Malaysia's MSPO as a credible sustainability standard by the European Union in September 2025 further affirmed the country's efforts to strengthen governance and supply chain transparency.