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$1207.5
Soybean Oil — Chicago (CBOT)
$441
Soybean Oil — Dalian (DCE)
$744
Sunflower Oil — FOB Black Sea
$1,370
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NewsOils and Fats Sector Coverage

EU and Malaysia Join Forces on Deforestation-Free Trade

Fats and oils processing
August 20, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

The European Union and Malaysia will step up cooperation to help operators importing palm oil, rubber, timber and cocoa prepare for the EU's upcoming Deforestation Regulation (EUDR).

In a statement on its website, the EU Delegation to Malaysia said the collaboration aims to deliver mutual benefits for stakeholders on both sides, particularly in ensuring smooth trade in deforestation-free, legally sourced commodities.

The statement added that "European Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall, expressed great appreciation for Malaysia's efforts to align its national sustainability certification schemes with the requirements of the EU Deforestation Regulation."

It noted that the Malaysian Sustainable Palm Oil (MSPO) certification has been recognised as a credible sustainability scheme with a high-level digital traceability system, which could help EU operators importing palm oil from Malaysia meet compliance requirements.

Agriculture and Commodities Minister Datuk Seri Johari Abdul Ghani highlighted Malaysia's establishment of a centralised national system — a unified platform that integrates traceability records, polygon mapping, MSPO certification data and legality verification.

Roswall also praised Malaysia's constructive cooperation and its efforts to reduce deforestation to unprecedented low levels, noting the government's commitment to strengthening action against agriculture-driven deforestation.

The statement said: "The EU views Malaysia's efforts to ensure certified commodity production and transparent supply chains in the palm oil, rubber and timber sectors as highly significant."

During her visit, Roswall proposed holding a virtual technical workshop to raise awareness of the EU Deforestation Regulation among stakeholders in Malaysia.

She also affirmed the EU's readiness to work with Malaysia to strengthen deforestation-free supply chains, including through a project supporting smallholders in supplying sustainable, traceable palm oil and rubber to the EU market.

Roswall and Johari later visited Pulau Carey island, where they were briefed on local empowerment initiatives for indigenous communities and regenerative farming guided by MSPO good agricultural practices.

The delegation also toured Sime Darby Plantation's operations on the island, where the company presented its efforts to enhance traceability and transparency across its supply chain.

The statement added: "The examples presented on the island, ranging from indigenous smallholders to large plantations, gave EU regulators the opportunity to see Malaysia's comprehensive sustainability measures in the palm oil sector first-hand."

"This demonstrates that sustainability practices are being rigorously applied across all facets of the industry, regardless of scale or production size."

Source: Bernama