Malaysia Oversight

EU pledges continued cooperation with Malaysia on deforestation-free supply chains

By FMT in September 5, 2025 – Reading time 2 minute
EU pledges continued cooperation with Malaysia on deforestation-free supply chains


KELAPA_SAWIT
Plantation and commodities minister Johari Ghani said Malaysia is on the right track to be classified as a ‘low risk’ country in palm oil production, particularly with the mandatory MSPO certification.
PETALING JAYA:

The European Union has reaffirmed its readiness to work continuously with Malaysia in advancing deforestation-free supply chains for commodities.

In a statement, the EU delegation to Malaysia said the union supports Malaysia’s initiative to help smallholder farmers supply traceable, sustainable palm oil to the European market.

European commissioner for environment, water resilience and a competitive circular economy Jessika Roswall commended the constructive cooperation between the two sides, as well as Malaysia’s efforts to reduce deforestation to unprecedentedly low levels.

Roswall noted that Malaysia’s efforts to align its national sustainability certification schemes – particularly the Malaysian Sustainable Palm Oil (MSPO) certification – with the EUDR are crucial for EU operators sourcing palm oil from Malaysia.

“The EU recognises the MSPO certification as a credible sustainability scheme with a robust digital traceability system that can help operators comply with the EUDR when sourcing deforestation-free and legal agri commodities from Malaysia,” she said.

Plantation and commodities minister Johari Ghani briefed Roswall on the establishment of Malaysia’s national centralised system, designed to help exporters meet EU deforestation regulation requirements.

The delegation said Roswall acknowledged Malaysia’s commitment to further strengthen efforts to combat deforestation.

“These outcomes reflect a governance system that is transparent, measurable, and accountable,” she said.

Roswall also offered to organise a virtual conference to raise greater awareness of the EUDR among stakeholders sourcing commodities from Malaysia, including the role of traceability schemes such as MSPO under the regulation.

Earlier today, Johari said Malaysia is on the right track to be classified as a “low risk” country in palm oil production, particularly with the mandatory MSPO certification.

Johari said the MSPO certification allowed the country to demonstrate its sustainability practices and the effectiveness of its traceability system, as well as prove that none of its products originated from deforested land.



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