RSPO, NASH and ASB United Join Forces to Empower Malaysia's Smallholders and Advance Sustainable Palm Oil

Tue, 04 Nov 2025 16:40:00 +0800

KUALA LUMPUR, Malaysia, Nov. 4, 2025 /PRNewswire/ -- The Roundtable on Sustainable Palm Oil (RSPO), Asia School of Business (ASB) through its Center for Sustainable Small-owners (CSS), and 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.

From left to right: Signing the MoU are Dr. Melati Nungsari, Asia School of Business (ASB); Guntur Cahyo Prabowo, Roundtable on Sustainable Palm Oil (RSPO) and Tuan Haji Adzmi bin Hassan, National Association of Smallholders (NASH)

Malaysia's smallholder sector stands at a decisive moment. With over half of smallholder-owned oil palms now past 25 years old and a rapidly ageing farmer population, productivity and incomes face mounting strain. At the same time, global frameworks such as the EU Deforestation Regulation (EUDR) are reshaping trade expectations and raising the sustainability bar for all producers.

Despite significant progress in certification, many smallholders remain caught between compliance and competitiveness. This important collaboration builds practical pathways for smallholders to address the challenges and to achieve both RSPO and national certification readiness — two complementary systems that underpin Malaysia's global credibility in sustainable palm oil production.

During today's signing of the MoU, Adzmi bin Hassan, President of NASH, described the initiative as a return to the founding spirit of empowerment that shaped Malaysia's rural development story, "This collaboration is not about one standard replacing another," he said. "It is about equipping smallholders so that when they are ready for RSPO, they are also naturally prepared for MSPO. The focus is on capability, confidence, and continuity."

"This MoU shows that Malaysia's smallholders are not the problem, they are the solution," continued Adzmi Hassan. "By aligning national and international standards, we are turning compliance into opportunity, restoring pride to our smallholders, and securing Malaysia's sustainable future." The collaboration supports the national agenda to elevate smallholder competitiveness, strengthen supply-chain traceability, and advance sustainable growth within Malaysia's palm-oil sector.

Enhancing productivity, improving data reliability, and deepening collaboration across the value chain will ensure every smallholder benefits from Malaysia's sustainability journey. RSPO's Head of Smallholder Unit, Guntur Cahyo Prabowo, added "Sustainability must never become a barrier. Through partnerships like this, Malaysia is demonstrating how to translate inclusive policy into on-the-ground implementation where smallholders are the main beneficiaries." He commended the government's focus on placing smallholders at the centre of sustainability policy, a move, he noted, that many of Malaysia's neighbours are still watching closely and could learn from. Addressing these priorities now offers the country an opportunity to lead by example, proving that inclusion and innovation can advance together. To achieve this, stronger alignment among institutions, producers, and market partners is essential. Smallholders must be supported not only to meet standards but to thrive through better organisation, traceability tools, and opportunities for continuous learning.

The NASH–RSPO–ASB collaboration unites grassroots networks, academic research, and global sustainability expertise. As mutually agreed, implementation of capacity building for NASH members will be through a phased approach delivering targeted training in good agricultural practices, record-keeping, and leadership development; strengthening data collection to enhance traceability; and promoting sustainability-linked incentives that make responsible production both profitable and lasting.

Dr Asad Ata, Faculty Director of ASB's Center for Sustainable Small-Owners (CSS), highlighted that the partnership reflects ASB's long-standing commitment to translating research into real impact. "This is research in action," Dr. Ata said. "By aligning data, training, and incentive systems, we're helping smallholders turn certification into a pathway for resilience and growth. When sustainability is backed by credible research and fair opportunity, it becomes both practical and empowering."

The three-year collaboration begins immediately, with socialisation activities now being scoped with local authorities and community leaders. As Malaysia redefines its smallholder legacy for a new era, the NASH–RSPO–ASB partnership stands as proof that development and sustainability are most powerful when they are inclusive, evidence-based, and rooted in shared purpose.

About RSPO:

The Roundtable on Sustainable Palm Oil (RSPO) is a global partnership to make palm oil sustainable. Formed in 2004, the RSPO is a multi-stakeholder non-profit organisation that unites members from across the palm oil value chain, including oil palm producers, palm oil processors and traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation non-governmental organisations (NGOs), and social or developmental NGOs.

As a partnership for progress and positive impact, the RSPO facilitates global change to make the production and consumption of palm oil sustainable. To inspire change, we communicate the environmental and social benefits. To make progress, we catalyse collaboration. To provide assurance, we set the standards of certification.

The RSPO is registered as an international association in Zurich, Switzerland, with main offices in Malaysia and Indonesia, and offices in China, Colombia, Netherlands, United Kingdom and the United States. 

About NASH:

The National Association of Smallholders Malaysia (NASH) represents and advocates for the interests of smallholder farmers nationwide, focusing on capacity building, policy advocacy, and improving welfare and productivity across the sector.

About ASB:

Asia School of Business (ASB) is a graduate business school established in collaboration with the Massachusetts Institute of Technology (MIT) Sloan School of Management, Cambridge, United States. ASB offers degree and non-degree programmes, research, innovation, and entrepreneurship initiatives — including leadership and management courses — to serve regional and global needs for business talent and leadership across emerging markets.

NASH