RSPO, NASH & ASB Join Forces to Support Malaysian Smallholders and Promote Sustainable Palm Oil
- nabalunews
- 19m
- 3 min read
4 November 2025
KUALA LUMPUR: The Roundtable on Sustainable Palm Oil (RSPO), Asia School of Business (ASB) through its Centre for Sustainable Small-Owners (CSS), and the National Association of Smallholders (NASH) have signed a Memorandum of Understanding (MoU) to strengthen the resilience of smallholders in Malaysia through training, digital readiness, and sustainable financing.
Malaysia’s smallholder sector is at a pivotal juncture. With over half of smallholder-owned oil palms now exceeding 25 years of age and an increasingly ageing farmer population, productivity and incomes are under mounting pressure. Simultaneously, global frameworks such as the EU Deforestation Regulation (EUDR) are reshaping trade expectations and raising the sustainability benchmarks for all producers.
Despite notable progress in certification, many smallholders remain caught between compliance and competitiveness. This vital collaboration aims to create practical pathways for smallholders to overcome these challenges and achieve both RSPO and national certification readiness—two complementary systems that underpin Malaysia’s reputation as a leader in sustainable palm oil production.
During the signing ceremony today, Adzmi Hassan, President of NASH, described the initiative as a return to the foundational spirit of empowerment that has shaped Malaysia’s rural development narrative. “This collaboration is not about one standard replacing another,” he stated. “It’s about equipping smallholders so that, when they are ready for RSPO certification, they are also well-prepared for MSPO. The focus is on building capability, confidence, and ensuring continuity.”
He further emphasised, “This MoU demonstrates that Malaysia’s smallholders are not the problem—they are the solution. By aligning national and international standards, we are transforming compliance into opportunity, restoring pride among smallholders, and securing a sustainable future for Malaysia.”
The partnership supports the national agenda to enhance smallholder competitiveness, improve supply chain traceability, and promote sustainable growth within Malaysia’s palm oil sector.
By boosting productivity, enhancing data reliability, and fostering collaboration across the value chain, the initiative ensures that every smallholder benefits from Malaysia’s sustainability journey.
Guntur Cahyo Prabowo, Head of RSPO’s Smallholder Unit, added, “Sustainability must never become a barrier. Through partnerships like this, Malaysia is demonstrating how inclusive policy can translate into tangible on-the-ground actions where smallholders are the main beneficiaries.”
He praised the government’s focus on placing smallholders at the centre of sustainability policies, noting that many of Malaysia’s neighbouring countries are watching closely and could learn from this approach. Addressing these priorities now presents an opportunity for Malaysia to lead by example, proving that inclusion and innovation can progress hand in hand. Achieving this requires stronger alignment among institutions, producers, and market partners, with support extending beyond standard compliance to encompass better organisation, traceability tools, and ongoing learning opportunities.
The NASH–RSPO–ASB partnership unites grassroots networks, academic research, and global sustainability expertise. As agreed, capacity-building for NASH members will be implemented through a phased approach, including targeted training in good agricultural practices, record-keeping, and leadership development; enhancing data collection for improved traceability; and promoting sustainability-linked incentives that make responsible production both profitable and sustainable.
Dr Asad Ata, Faculty Director of ASB’s Centre for Sustainable Small-Owners (CSS), highlighted that the partnership exemplifies ASB’s long-standing commitment to translating research into tangible impact. “This is research in action,” he said. “By aligning data, training, and incentive systems, we’re helping smallholders turn certification into a pathway for resilience and growth. When sustainability is underpinned by credible research and fair opportunities, it becomes both practical and empowering.”
The three-year collaboration commences immediately, with socialisation activities currently being scoped in collaboration with local authorities and community leaders. As Malaysia redefines its legacy for smallholders in this new era, the NASH–RSPO–ASB partnership stands as a testament to the fact that development and sustainability are most effective when they are inclusive, evidence-based, and driven by a shared purpose.
