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Malaysia is currently classified as a “standard-risk” country under the European Union Deforestation Regulation (EUDR).
The EU regulation requires palm oil exporters to the bloc to ensure that their products are deforestation-free and legally sourced.
Petaling Jaya: Malaysia is on track to be classified as a “low-risk” country in palm oil production, especially with the mandatory implementation of Malaysian Sustainable Palm Oil (MSPO) certification, according to Plantation and Commodities Minister Johari Ghani.
Johari said one of the key measures that can improve a country’s commodity risk classification is MSPO certification, which became mandatory in Malaysia in 2020.
The EUDR requires exporters of cocoa, coffee, palm oil, soybeans, cattle, rubber, and timber to the European Union to ensure that products are deforestation-free and legally sourced.
In a Bernama report, Johari said MSPO certification has allowed Malaysia to demonstrate its sustainability practices and the effectiveness of its traceability system, while also proving that its products do not come from deforested land.
He added that the government is compiling updated information on the country’s palm oil production to submit to the European Union, a key requirement for changing a country’s commodity risk classification.
He said consistency is necessary and that achieving a low-risk classification is likely a matter of time.
Johari explained that a detailed methodology is used before any country is classified as low, standard, or high risk.
He added that the most important point is that Malaysia is moving in the right direction toward achieving that classification.
He also noted that one of the required processes is the continuous submission of accurate data.
Previously, the agriculture sector was under a different ministry from the one responsible for submitting forest data to the Food and Agriculture Organization.
He made the remarks after accompanying European Commissioner for Environment, Water Resilience, and a Competitive Circular Economy Jessika Roswall during her visit to Kampung Sungai Judah and the SD Guthrie Palm Oil Experience Centre in Carey Island, Kuala Langat.
During the visit, Roswall toured the sustainability exhibition at the Palm Oil Experience Centre, 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 in Kampung Sungai Judah, she was briefed on regenerative agriculture, good agricultural practices, sustainable harvesting methods, and the empowerment of indigenous communities through palm oil-related economic activities.