Situational Analysis (SitAn) of Labour Contracting Practices among Palm Oil Cooperatives: A Case Study of Koperasi Penanam Sawit Mampan (KPSM)

2025

Abstract

This study conducts a situational analysis (SITAN) of labour contracting practices among palm oil cooperatives, focusing on Koperasi Penanam Sawit Mampan (KPSM). While cooperatives have emerged as intermediaries in addressing chronic labour shortages, their limited institutional capacity and regulatory ambiguity create risks of legal non-compliance, MSPO breaches, and reputational harm. Using a mixed-methods approach scoping review, semi-structured interviews, and focus group discussions this research examines cooperative governance, labour models, and compliance challenges. Findings contribute to scholarship on cooperative labour governance while proposing an alternative contracting model that enhances smallholder resilience, strengthens MSPO alignment, and advances fair and sustainable labour practices in palm oil.

Project Leader

Muhammad Faliq Abd Razak (Institut Kajian Malaysia dan Antarabangsa (IKMAS), Universiti Kebangsaan Malaysia (UKM), faliqrazak@ukm.edu.my)