Malaysia Targets Low-Risk Palm Oil Status Under EU Rules

Malaysia is strengthening its case to be classified as a low-risk producer of palm oil, with officials pointing to the country’s mandatory Malaysian Sustainable Palm Oil (MSPO) certification as proof of its commitment to sustainability.

Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani said the government is consolidating the latest production and forestry data to submit to the European Union (EU), which requires exporters to demonstrate their products are deforestation-free. Malaysia is currently listed as a “standard risk” country under the EU Deforestation Regulation.

“By consistently submitting accurate data and showing the effectiveness of our traceability system, we can demonstrate that Malaysian palm oil does not come from deforested land,” Johari said after accompanying European Commissioner Jessika Rosswall on a site visit to Carey Island.

The MSPO certification, mandatory since 2020, introduced a national traceability system to track palm oil from plantations to refineries. Johari said this framework positions Malaysia well to upgrade its risk status. “I believe it’s only a matter of time before we achieve the low-risk classification,” he added.

During her visit, Rosswall toured the Palm Oil Experience Centre’s sustainability gallery, where she was briefed on Malaysia’s forest governance and supply chain transparency efforts.

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