Assessing Forced Labor and Standards in Malaysian Palm Oil Industry

Abstract

The Malaysian palm oil industry has been subject to criticism for its unsustainable practices and the prevalence of forced labour. To address these concerns, Malaysia has implemented the National Action Plan on Forced Labour (NAPFL) in accordance with international standards. This study evaluates the implementation of NAPFL and international standards in the Malaysian palm oil industry through a literature review. The findings suggest that although progress has been made, there are still gaps in compliance within the industry. In particular, the issue of labour in smallholder palm oil plantations requires a community-based management approach, whereby smallholders can work together to enhance efficiency, productivity, and resource utilization while addressing common challenges. This approach may be supported by training and education, infrastructure development, financial and credit support, technology adoption, and cooperative farming. To comply with the Roundtable on Sustainable Palm Oil (RSPO) labour requirements and attract workers, this study recommends offering competitive wages, providing decent working conditions, implementing fair labour policies, investing in worker training, engaging with the local community, promoting sustainability, and collaborating with local employment agencies. These measures can help address the challenges of recruitment and retention of labour in the industry. The study underscores the significance of addressing these gaps in order to promote sustainable practices and prevent forced labour in the Malaysian palm oil industry.