Measuring The Knowledge Level, Achievement and Impact of Good Agricultural Practices of MSPO by The Certified Independent Smallholders in Malaysia

Cluster Research Grant, 2020

Abstract

The oil palm industry has been receiving criticism for its poor cultivation practices since the late 1990s. The palm oil industry is associated with negative issues such as air pollution (haze), deforestation and land ownership. As a result, some countries in the world have launched anti-palm oil campaigns. In addition, consumers are now smart in product selection where they take into account social and environmental issues in the manufacturing of every product. To address these issues, oil palm smallholders and oil palm factories in Malaysia must obtain a recognized sustainability certification. One of the recognized sustainability certifications for world class palm oil is Malaysian Sustainable Palm Oil (MSPO). Therefore, after six years of introducing MSPO, the smallholders' true knowledge of MSPO should be evaluated. Additionally, the effectiveness of MSPO through the achievement of enforcement after being adopted by smallholders should be measured. Furthermore, the impact on the sustainability of oil palm cultivation practices in accordance with MSPO principles has also been studied to address the issues and controversies facing the Malaysian palm oil industry.

Semi-structured interview method using a questionnaire with 800 smallholders in Malaysia will be conducted. This study uses the Smart Partial Least Square 3 software in the Structure Equation Modeling (SEM) framework to analyze the relationships between variables. The use of SEM involves three main analyzes: descriptive statistics (min), factor analysis and correlation analysis. Besides, the measurement of achievement index is also to be performed. The findings of this study are expected to summarize some important points for policy makers and stakeholders (MPOB). The new strategy will enhance existing policies and steps to ensure that the negative issues facing the oil palm industry can be addressed.

Project Leader

Norlida Hanim Mohd Salleh (Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), )