Malaysia: Sustainability still a challenge for plantation sector with new EU deforestation law, say research houses
Soybean
RBD Palm Oil
Malaysia
Published Mar 10, 2023
Tridge summary
KUALA LUMPUR (March 9): RHB Investment Bank Bhd has considered sustainability to still be a challenge for plantation players, especially with the new European Union (EU) deforestation law which will come into effect in December 2024, as well as the scrutiny of labour practices in the industry.
Original content
KUALA LUMPUR (March 9): RHB Investment Bank Bhd has considered sustainability to still be a challenge for plantation players, especially with the new European Union (EU) deforestation law which will come into effect in December 2024, as well as the scrutiny of labour practices in the industry. It said planters would need to step up their efforts via the implementation of industry-wide real time digital traceability, ensure collaboration of information through the adoption of cloud technologies and get regional government agencies or regulators on board to help the industry comply at the lowest cost. “Most importantly, smallholders cannot be left behind in the move to sustainability, given that nearly 40% of palm oil is produced from smallholder plantations,” it said in a note on Thursday (March 9). Therefore, the research house made no changes to crude palm oil (CPO) price assumptions of RM3,900 per tonne for 2023, and maintain a “neutral” stance for the plantation sector. “The ...
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