The Influence of Good Agricultural Practice (GAP) on the Productivity and Well-Being of Malaysian Sustainable Palm Oil (MSPO)-Certified Independent Smallholders in Malaysia

Good agricultural practice (GAP) helps increase productivity by producing fresh fruit bunches (FFBs), and selling FFBs will increase Independent Smallholders’ (ISH) income. However, although GAP promotes increased productivity, the effectiveness of GAP in delivering the well-being of the ISH in oil palm production areas remains to be determined. To that end, this study (i) measures the smallholder’s well-being index, (ii) compares the well-being index by states in Malaysia, and (iii) maps the relationship between GAP implementation, productivity, and well-being. The study selected respondents using purposive sampling (PS). PS identifies and selects individuals with Malaysian Sustainable Palm Oil (MSPO) certification and knowledge and experience of GAP. As a result, the research interviewed 564 ISHs with MSPO certification from 162 Sustainable Palm Oil Clusters (SPOC). The study used Principal Components Analysis (PCA) and the Structural Equation Model (SEM) framework to achieve the objectives. The study found that the average ISH well-being index was 0.62, and ISHs in Sabah had the highest well-being, with 0.73 compared to other states. The study also found that GAP influences productivity and is positively and significantly related to well-being. Therefore, it indicates to ISHs and the government the importance of GAP implementation to increase ISHs’ productivity and well-being.