Full MSPO certification for KLK’s operations

IPOH: All Kuala Lumpur Kepong Berhad’s (KLK) upstream operations (its supplying estates and palm oil mills) in Malaysia have been certified under the Malaysian Sustainable Palm Oil (MSPO) standards as at end of December 2017, a year ahead of the mandatory timeline for producers that already have Roundtable on Sustainable Palm Oil (RSPO) certifications.

In line with the company’s commitment to create sustainable stakeholders’ values by integrating environmental and societal concerns into its business strategies and performance, KLK had been progressively undergoing the MSPO certification process since mid of 2017.

Other certification standards for palm oil that KLK has committed to include RSPO, Indonesian Sustainable Palm Oil (ISPO) and International Sustainability and Carbon Certification (ISCC) in which all serve to provide reliable assurance to stakeholders that the Company’s products are produced ethically and responsibly, with the necessary safeguards put in place to mitigate risks.

“We are pleased that we are able to achieve this feat in a short span of six months, it’s our people in each operating centre who make the difference and I appreciate the concerted efforts and commitments of all parties involved to continuously upholding the good agricultural practices as well as the sustainability practices,” said KLK chief executive officer Tan Sri Lee Oi Hian.

“We would like to congratulate KLK for achieving 100 per cent certification of its oil palm plantations and mills under MSPO Certification. With this achievement, KLK becomes one of the few oil palm companies to have reached this important milestone.

“Elsewhere, the government’s fiscal deficit target of 2.8 per cent of GDP under Budget 2018, compared to an estimated three per cent of GDP in 2017, is achievable given economic conditions as well as gradual recovery in the oil price, and underscores its commitment to long-term fiscal consolidation.

“Although the likelihood of overspending is higher in the leadup to the 14th General Election, there has been some evidence of improved budgetary discipline in recent years.

“Notably, fiscal slippage in respect of emoluments is envisaged to decline considerably, while spending on supplies and services was kept at 2.4 per cent of GDP in 2016 and 2017.”

Meanwhile, RAM saw that federal government debt remains elevated despite an anticipated decline in the debt level to 50.3 per cent of GDP by end-2018.

“The gernment’s debt burden translates into a relatively high debt service-to-revenue ratio of 12.9 per cent in 2018 – higher than those of Malaysia’s peers in the region.

Similarly, the Government’s contingent liabilities stayed significant at 16.9 per cent of GDP in 1H 2017, posing a continuous risk to its fiscal position.

This ratio is estimated to rise to 18.4 per cent by 2023, due to the development of large projects as well as the Government’s routine commitments to housing and higher-education loan agencies.