MALAYSIA will fight the European Union’s Deforestation Regulation (EUDR) as it will negatively impact the country’s trade in palm oil, cocoa, and timber, said Deputy Prime Minister Fadillah Yusof.  

Fadillah, who is also the Minister of Plantation and Commodities, said the legislation would be another trade barrier between Malaysia and the EU as the due diligence requirements would indirectly increase administrative and production costs. 

He said Malaysia viewed the issue seriously and would work with other countries that are also impacted by the EUDR “to collectively put our position across, demand fairer treatment and correct the negative campaign against our products”. 

“We must continue to push against negative campaigns towards our commodities, in particular palm oil,” he told business leaders attending a global business forum on enhancing Malaysia’s commodity exports and globalising the plantation industry in Kuala Lumpur today. 

Fadillah said Malaysia had never neglected its responsibility towards environmental sustainability even as it pursued the opportunities offered by agricultural commodities. 

“With the world now witnessing a growing demand for sustainably produced commodities, we realised, it is very important to balance our current needs without compromising the ability of future generations to meet theirs.” 

For this, he added, Malaysia has pledged its commitment to fulfilling the environmental, social and governance requirements that were in line with the United Nations’ Sustainable Development Goals. 

“We have undertaken several measures to ensure it can be achieved and will continue to do so,” he stated. 

Fadillah said palm oil, without a doubt, was “the most efficient oil-bearing crop,” contrary to its negative portrayal by Western media.  

“Oil palm accounts for only 0.6% of the world’s agricultural land use but produces 35.5% of global vegetable oil output. 

“If palm oil were to be substituted for other vegetable oils, such as sunflower, rapeseed, and soy, a 7 to 9-fold increase in the land area would be required to produce the same amount of oil,” he said. 

Fadillah added that palm oil offered a sustainable way to meet the world’s needs for food security, climate change, scarcity of arable land, and growing populations. 

The international markets, he added, should therefore recognise Malaysia’s Sustainable Palm Oil certification and “accept our products as sustainably produced”. 

Palm oil is the largest commodity sector in the country. – February 23, 2023.