The Malaysian Palm Oil Council (MPOC) on Thursday welcomed the European Union’s decision to delay the enforcement of its deforestation regulation by an year but said uncertainty over its implementation raises questions about the rule’s workability.
The EU Deforestation Regulation (EUDR), which was originally due to take effect from December 2025, will now be implemented in December 2026. The regulation aims to ensure commodities such as palm oil, cocoa and soy are not linked to deforestation.
MPOC said companies in the Malaysian palm oil industry have already invested heavily in preparing for compliance with the regulation but remain in limbo due to uncertainty over how it will be implemented. “The continued uncertainty creates an unsustainable burden for responsible businesses,” MPOC Chief Executive Officer Belvinder Sron said, calling on European policymakers to create a more equitable and scientifically sound framework.
Malaysia ‘standard risk’
Malaysia has, in recent years, strengthened its sustainability standards for palm oil, including through the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which prohibits new planting in natural forests and protected areas. The EU has recognised the MSPO, but Malaysia remains classified as “standard risk” under the EUDR. MPOC said this classification does not reflect Malaysia’s progress on deforestation, citing data from Global Forest Watch that shows primary forest loss fell by 57 per cent between 2015-17 and 2020-22, with further declines recorded in 2024.
The Council urged the EU to use the extended timeline to reform the EUDR classification system so it better reflects real-world environmental outcomes, rewards sustainable practices and provides clear pathways for countries to improve their status.
Malaysia is the world’s second largest producer of palm oil, a commodity widely used in food, fuel and consumer goods.
Published on September 25, 2025