Malaysia’s palm oil is deforestation-free but the EU ban may impact smallholders

The Malaysian Palm Oil Board (MPOB) has expressed concerns over the new European Union (EU) import ban, which aims to curb deforestation by targeting commodities sourced from deforested land after 2020. While emphasizing that Malaysian palm oil and products are deforestation-free, MPOB director general, Datuk Dr. Ahmad Parveez Ghulam Kadir, points out that the ban could increase administrative and production costs for the industry, especially affecting smallholders. He also highlighted Malaysia's commitment to sustainable palm oil production under the Malaysian Sustainable Palm Oil (MSPO) certification and efforts to balance environmental protection with socio-economic development.

The EU regulation, which all relevant companies must adhere to, will require showing proof of deforestation-free production and detailed farmland information. Despite concerns, Kadir remains optimistic, emphasizing that palm oil produced from existing plantations before 2021 is deforestation-free and hoping for fair trade practices. He also noted that Malaysia's oil palm industry is heavily regulated and is taking steps to reduce deforestation, such as enacting policies to limit oil palm cultivation and establish the Malaysian Palm Oil Green Conservation Foundation.