Kuala Lumpur, 22 May 2025 – The announcement today made by the European Commission confirmed earlier reports that Malaysia was given a ‘standard risk’ status under the European Union Deforestation Regulation (EUDR) country benchmarking system, while other countries with meagre records on forest loss and degradation, including EU member states, were given ‘low risk’ status.
Chairman of the Malaysian Palm Oil Council (MPOC), Dato’ Carl Bek-Nielsen, commented, “The Malaysian palm oil companies and smallholders have made significant strides to reduce primary forest loss and forest degradation. This is further exemplified through the mandatory implementation of the MSPO certification scheme since 2020, which has led to a substantial reduction of forest loss in Malaysia. The European Commission knows that we have a far better record on this than some European states. And yet the European Commission has rewarded its own members with ‘low risk’ status. This apparent favouritism will inevitably cause resentment instead of building bridges for closer cooperation.”
According to Belvinder Sron, CEO of MPOC, the EC’s decision on Malaysia is not what the entire Malaysian palm oil industry had expected. She said, “We are deeply disappointed at what we feel is a highly questionable decision. Of most concern to us, and I am sure other EU trading partners, too, is the accompanying documentation that explains the data on which the Commission has based its decision.”
“We will request clarification from the European Commission on its full benchmarking methodology used in its assessment. This will be our top priority. The ‘standard risk’ status for Malaysia does not recognise at all the progress and achievements made by the Malaysian palm oil industry in reducing deforestation and producing sustainable palm oil for European consumers.”
She further elaborated, “Malaysia has consistently demonstrated a strong and measurable commitment to forest conservation, achieving a significant reduction in deforestation over the past ten years. The latest independent satellite data from Satelligence showed Malaysia’s palm oil sector has transformed its environmental footprint for the better, and confirms our leadership in tackling deforestation, while even the older UN data used by the EU highlighted our strong performance.”
“Furthermore, Global Forest Watch provided transparent, accessible, and consistent data, showing that Malaysia retains far more primary forest than many historically industrialised nations, and we are doing better at preserving it. Between 2014 and 2023, Malaysia reduced primary forest loss by 65%, outpacing global peers. In 2024 alone, we achieved a further 13% reduction, marking the first time Malaysia has dropped out of the global Top 10 for tropical primary forest loss.”
“Since 2019, we’ve also seen a decline in total planted area for oil palm. Through our mandatory MSPO 2022 standard, we mandated zero conversion of natural forests, protected areas, and High Conservation Value areas after 31 December 2019. Malaysia’s sustainability efforts are fully aligned with the deforestation-free and legality criteria of the EUDR, and with our broader climate commitments under the Paris Agreement.”
“The European Commission’s decision discredits the whole country benchmarking system. The EUDR should encourage genuine progress, especially from countries like Malaysia that have already shown leadership in sustainable forest management.” Belvinder concluded.
For more information on MPOC and Malaysian palm oil, visit www.mpoc.org.my
