In response to the European Union’s new Deforestation-Free Products Regulation (EUDR), the Malaysian government has established a national committee aimed at strengthening the country’s compliance and defending its trade interests. The regulation, which takes effect at the end of 2024, requires companies exporting products like palm oil, cocoa, rubber, soy, and timber to the EU to prove they are not linked to deforestation after December 31, 2020. The newly formed Malaysian committee—led by the Ministry of Plantation and Commodities—brings together key stakeholders from federal and state governments, the private sector, and indigenous representatives to coordinate a unified national response.
Malaysia, one of the world’s largest palm oil producers, argues that the EU law could unfairly penalize smallholders and create trade barriers, even for producers who meet sustainability standards. The committee will work to align national certification schemes like MSPO (Malaysian Sustainable Palm Oil) with EU requirements, increase supply chain transparency, and advocate for mutual recognition mechanisms. Officials stress that while Malaysia supports sustainable production, it also seeks to protect rural livelihoods and prevent economic marginalization. The move signals a growing geopolitical pushback from palm-producing nations over what they perceive as unilateral environmental policies by importing countries. More