Barriers to MSPO 2.0 Certification Transition: Empirical Evidence from Independent Oil Palm Smallholders in Malaysia

Abstract

The revision of the Malaysian Sustainable Palm Oil standard requires already-certified independent smallholders to adjust established practices rather than make an initial certification decision. This study examined certification transition capacity among MSPO 1.0 certified independent oil palm smallholders preparing for MSPO 2.0. A quantitative cross-sectional survey was conducted across 11 Malaysian states from 1 November to 31 December 2024, and 400 eligible and complete questionnaires were retained. Seven observed composite indices represented certification cost,      extension services, agricultural inputs,   plot and boundary conditions, plantation conditions, pesticide and herbicide management, and standard operating procedure and policy implementation. Focused transition readiness was calculated from willingness, commitment and confidence in the benefits of continued certification. Descriptive results showed very high ratings for all transition barriers, with mean scores ranging from 4.49 to 4.61, alongside very high readiness at a mean of 4.70. This pattern indicates that commitment to certification can coexist with substantial operational constraints. All bivariate correlations with readiness were positive and statistically significant. The simultaneous-entry regression model was statistically significant, F(7,392)=77.589, p<0.001, and accounted for 58.1% of the observed variance in readiness (R²=0.581; adjusted R²=0.573). Certification cost, pesticide and herbicide management, and SOP and policy implementation showed negative conditional associations with readiness, whereas extension services, agricultural inputs, plot and boundary conditions, and plantation conditions showed positive conditional associations. These positive coefficients do not indicate that barriers        improve readiness; rather, they reflect substantial overlap among implementation conditions and suggest that committed smallholders may recognise constraints more clearly. The findings support an implementation capacity approach combining targeted finance, continuing        extension support, suitable inputs, agrochemical guidance, plot documentation and simplified compliance tools. The implications are most directly relevant to SDG 12, with supporting links to SDGs 8 and 15, although ESG performance and SDG progress were not directly measured.