
Malaysia’s deputy commodities minister said the European Union’s upcoming anti-deforestation law presents both challenges and opportunities for the Malaysian palm oil industry, speaking at an industry conference on Tuesday.
Deputy Minister Chan Foong Hin said it is essential for the sector to understand the impact of the EU law so that local practices can be adapted and market access maintained.
Last month, the European Union approved a one-year delay to the controversial deforestation law, which bans imports of palm oil, soybeans, and other commodities linked to forest destruction.
The law is scheduled to take effect on December 30, 2025.
The regulation requires companies and traders selling soybeans, meat, coffee, palm oil, and other products in the EU market to provide evidence that their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world’s largest palm oil exporters, have previously complained that the law and its implementation rules discriminate against them.