Barriers and Benefits Arising from the Adoption of Sustainable Certification for Smallholder Oil Palm Producers in Malaysia: A Systematic Review of Literature

Abstract

Malaysia is the world’s second largest producer of palm oil, which, not unexpectedly, is one of the largest contributors to the country’s GDP. However, the Malaysian palm oil industry faces numerous issues, including a boycott for imports into the European Union (EU) on the basis that Malaysia does not allegedly practice good agriculture, fails to meet sustainability standards and exploits labor rights. To overcome the situation, the Government of Malaysia is strongly committed to implementing good agricultural practices that meet international sustainability standards through sustainable certification. To facilitate the adoption of sustainable certification by smallholder palm oil producers, through a comprehensive review of the literature, this study seeks to identify the social, environmental and economic benefits derived from sustainable certification.