Malaysia Oversight

Malaysian palm oil on right track to be classified as ‘low risk’

By FMT in September 5, 2025 – Reading time 2 minute
Malaysian palm oil on right track to be classified as ‘low risk’


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The EUDR requires exporters of palm oil to the EU to ensure that their products are deforestation-free and legally sourced.
PETALING JAYA:

Malaysia is on the right track to be classified as a “low risk” country in palm oil production, particularly with its mandatory Malaysian Sustainable Palm Oil (MSPO) certification, says plantation and commodities minister Johari Ghani.

Malaysia is currently classified as “standard risk” under the European Union Deforestation Regulation (EUDR).

Johari said one of the key measures that could improve a nation’s commodity classification was the MSPO certification, which was made mandatory in Malaysia in 2020.

The EUDR requires exporters of cocoa, coffee, palm oil, soybean, cattle, rubber and timber to the EU to ensure that their products are deforestation-free and legally sourced.

In a Bernama report, 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.

He said the government was collating updated information about the nation’s palm oil production for submission to the EU – a prerequisite to changing a country’s commodity classification.

“We must be consistent. I believe that it’s just a matter of time before we will be able to achieve low-risk classification,” he said.

“There is a detailed methodology involved before a country is classified as low, standard, or high risk. The most important thing is that we are moving in the right direction towards achieving that classification.

“One of the processes is the continued submission of accurate data. Previously, the plantation sector was overseen by a different ministry from the one responsible for providing forestry data to the Food and Agriculture Organization.”

He was speaking to reporters after accompanying European commissioner for environment, water resilience and a competitive circular economy, Jessika Rosswall, on her visit to Kampung Sungai Judah and the SD Guthrie Palm Oil Excellence Centre in Carey Island, Kuala Langat, today.

During the visit, Rosswall was taken on a tour of the Palm Oil Experience Centre Sustainability Gallery, where she was briefed on the national traceability system, Malaysia’s forest governance, and ongoing efforts to strengthen transparency in the palm oil supply chain.

Earlier at Kampung Sungai Judah, she was briefed on regenerative farming, good agricultural practices, sustainable harvesting methods and the empowerment of indigenous people through palm oil-related economic activities.



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