KUALA LUMPUR, 18 December 2025 — The European Union has announced a further postponement of the EU Deforestation Regulation (EUDR), extending its application by 12 months following ongoing operational and technical challenges, including the readiness of the EUDR IT system.
For Malaysia and its palm oil industry, the revised timeline does not change existing obligations. Malaysian exporters will continue to comply fully with EUDR requirements and provide complete Due Diligence Statement (DDS) information to EU buyers as required under the regulation, confirming that products are legally produced, deforestation-free and traceable.
Ms Belvinder Sron, Chief Executive Officer of MPOC, said:
“The extension reflects unresolved implementation challenges within the EU system. MPOC calls on the EU to benchmark Malaysia as a low-risk country and to ensure that smallholder farmers are not excluded from international supply chains as a result of disproportionate compliance requirements.”
Malaysia has advanced rapidly in traceability readiness through the National Traceability System (Sistem Kebolehjejakan Nasional (SKN)), which integrates e-MSPO, GeoSawit and SIMS into a unified, interoperable platform. The system consolidates certification data, geolocation coordinates and verified transactions, enabling EUDR-relevant information to be centrally accessed and shared with EU partners. This places Malaysia among the most prepared producer countries for transparent, deforestation-free supply chains.
Ms Belvinder Sron added:
“Malaysia’s mandatory MSPO certification provides a strong, nationally enforced assurance framework that can help simplify EUDR compliance for EU buyers. MPOC will continue working with EU partners to align data systems, strengthen traceability and support smallholders in meeting regulatory requirements.”
Malaysia’s sustainability progress is supported by independent assessments, including Global Forest Watch and Satelligence, which show sustained reductions in primary forest loss over the past decade. These outcomes are reinforced by the mandatory MSPO scheme and continuous improvements in monitoring and enforcement.
Under the revised EUDR framework, application deadlines are extended to 30 December 2026 for large EU operators and traders and to 30 June 2027 for micro and small enterprises. Due diligence requirements have also been streamlined, with responsibility for submitting the DDS placed on the first operator placing products on the EU market.
A mandatory European Commission review by 30 April 2026 will assess the regulation’s effectiveness and administrative burden. MPOC stresses that this review should also reassess country benchmarking to ensure that producing countries demonstrating measurable progress in reducing deforestation are appropriately classified as low risk.
With the extended timeline and upcoming review, Malaysia aims to deepen technical cooperation with the EU and ensure a stable supply of credible, verifiable and deforestation-free palm oil for European markets. The Malaysian palm oil industry remains committed to long-term engagement with the EU in advancing global sustainability objectives.
For more information, visit www.mpoc.org.my
For all media enquiries, please contact:
Kartigha Ayamanny, Assistant Manager, Sustainability, Promotions and Communication
Email: kartigha@mpoc.org.my
About the Malaysian Palm Oil Council (MPOC)
The Malaysian Palm Oil Council (MPOC) is dedicated to promoting the global market expansion of Malaysian palm oil and its derivatives by enhancing its image and acceptance through technological innovation, economic value, and environmental sustainability. With a vision to position Malaysia as the world leader in certified sustainable palm oil, MPOC champions the Malaysian Sustainable Palm Oil (MSPO) certification as a benchmark for ethical and responsible production. Through a strategic network of international offices in key markets – including China, India, the Middle East, Africa, and ASEAN – MPOC actively engages stakeholders, opens new market opportunities, and strengthens the global presence of Malaysian palm oil. As a cornerstone of Malaysia’s economy, the palm oil industry contributed RM109 billion in export earnings in 2024, accounting for 24% of global production and 32% of exports. MPOC remains committed to driving sustainable growth and global leadership in the palm oil sector.
