MALAYSIA will keep lobbying the European Union on palm oil, its second largest customer, even though the future for the commodity there is bleak, said Teresa Kok.

The primary industries minister said the EU told Malaysian officials earlier this month that the bloc will go ahead with its plan to phase out palm oil from biofuels used in the region by 2020.

Malaysian and Indonesia officials had gone to EU headquarters in Brussels, Belgium to negotiate the Renewal Energy Directive Delegated Act, which would ban biofuel ingredients that cause deforestation.

The visit came ahead of a visit by a top level Malaysian delegation led by Kok to the EU headquarters next month.

Kok said the impression given to the Malaysian-Indonesian delegation was that the Delegated Act to phase out palm oil will be adopted by the EU.

“It might be difficult to defer or delay. But, the regulations will be revealed in June 2021,” she said at a media briefing in Putrajaya.

The EU had proposed to phase out palm oil-based biofuels in the region by 2020 because of environmental concerns.

Malaysia and Indonesia consider the EU proposal as discriminatory as it ignores the fact that soy oil, which is also used in biofuels and is planted in North and South America, has also caused deforestation.

Last year, the EU imported 1.9 million tonnes of Malaysian crude palm oil (CPO), the second largest buyer of the commodity after India at 2.51 million tonnes.

Kok said that despite the setback they are prepared to continue to lobby and campaign.

“During this period we still need to continue to engage with EU leaders. We still need to do a lot of lobbying and campaigning if we want to project our palm oil as a five star product.

“We want to ensure that all our exports to Europe are certified sustainable.”

Expanding markets

Due to the potential loss of the EU market, Kok said the ministry is actively searching for new markets.

“We have engaged the help of ministers now to promote palm oil globally.

“Recently, Deputy Primary Industries Minister Shamsul Iskandar Mohd Akin was in Saudi Arabia for a palm oil trade seminar. I was informed that the Arab businessmen’s reaction towards our palm oil was encouraging.”

She added that Defence Minister Mohamad Sabu will be promoting palm oil when he visits Iran and Russia.

“Basically all our ministers are going to be spokesmen for palm oil.”

Kok also said that Russia was willing to buy more palm oil and the Malaysian Palm Oil Council (MPOC) has already started engaging with them.

“These are some of the new markets that we are exploring.

“All industry players need to come together to promote our palm oil as premium grade, is safe to consume and is a five star oil,” she added. – April 27, 2019.