Technological Innovation and Digitalisation in Monitoring MSPO Compliance: A Review on Blockchain Technology

Abstract

The Malaysian Sustainable Palm Oil (MSPO) certification ensures sustainability, environmental responsibility, and ethical practices in the palm oil industry. However, challenges such as supply chain complexity, data manipulation, and a lack of transparency hinder effective compliance monitoring. The agricultural supply chain, particularly in palm oil production, faces issues related to traceability, fraudulent practices, and inefficient record-keeping, making it difficult to uphold sustainability standards. Blockchain technology, with its decentralized and immutable ledger, offers a potential solution to these challenges. Key features such as transparency, security, and smart contracts facilitate real-time data sharing, ensuring greater accountability across the supply chain. This paper explores the role of blockchain in enhancing MSPO compliance by improving traceability, reducing fraud, and fostering trust among stakeholders. Additionally, blockchain-driven digitalisation can automate compliance verification, reducing administrative burdens and increasing operational efficiency. The study further discusses the future prospects of blockchain technology in agriculture, emphasizing its potential integration with IoT and artificial intelligence to create a robust, data-driven ecosystem. The findings suggest that blockchain has the potential to revolutionize MSPO compliance monitoring, paving the way for a more transparent and sustainable palm oil industry.