Influencing factors in the adoption of Malaysian Sustainable Palm Oil (MSPO) 2.0 among independent smallholders

The Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme represents a crucial advancement in promoting sustainable practices within Malaysia's palm oil industry. This study explores the factors and challenges influencing the adoption of MSPO 2.0 certification by independent oil palm smallholders in Malaysia. Independent smallholders play a pivotal role in Malaysia's palm oil sector, yet they face numerous barriers to certification, including financial constraints, limited technical knowledge, inadequate access to institutional support, and market uncertainties. This study employs the Theory of Planned Behaviour (TPB) framework to analyse the determinants of smallholder adoption readiness, incorporating factors such as knowledge and awareness, perceived benefits, education levels, and institutional support. A quantitative method approach was utilized, involving survey-based data collection from 400 certified independent smallholders in MSPO 1.0 across different 11 states in Malaysia. Descriptive analysis, multiple linear regression, and cost-benefit analysis were conducted to identify key determinants influencing MSPO 2.0 adoption. The findings reveal that knowledge and awareness, financial incentives, and perceived economic benefits significantly affect smallholders' readiness for certification. However, challenges such as high compliance costs, lack of training programs, and regulatory complexities hinder widespread adoption. Furthermore, the study highlights the need for enhanced government intervention, financial support mechanisms, and targeted training programs to bridge the knowledge gap and improve accessibility for smallholders. The research contributes to the ongoing discourse on sustainable palm oil by providing valuable insights into the socio-economic and policy-driven factors affecting certification uptake. The findings have practical implications for policymakers, industry stakeholders, and sustainability advocates in designing more effective strategies to enhance smallholder participation in MSPO 2.0. By addressing the identified challenges and leveraging supportive policies, Malaysia can strengthen its position as a global leader in sustainable palm oil production while ensuring the socio-economic well-being of independent smallholders.