Johari said postponing the EU Deforestation Regulation’s (EUDR) implementation was a welcome relief to Malaysia and other palm oil producers as full compliance with the policy can only be achieved over time.
“At the same time, critical issues such as creating transparent benchmarking criteria would need to be closely looked over so as to not unfairly label producer countries as ‘high-risk’.
“We hope that the EU Parliament will play a more accommodative role to address this matter for the benefit of the world,” he said at the Malaysian Palm Oil Forum in Kuala Lumpur today.
Johari reiterated Malaysia’s commitment to sustainable palm oil production and to compliance with global targets, such as a 45% reduction in carbon intensity against gross domestic product by 2030, and retaining at least 50% of the nation’s forest cover.
“We have long embraced sustainable practices. The EUDR provides an additional platform to demonstrate that our palm oil industry is not only ready to meet these demands but also well-positioned to thrive,” he said.
Johari also called for meaningful two-way engagements between the EU and producer countries, rather than enforcement through the imposition of regulations.
Such a spirit of cooperation would encourage fair trade as well as global partnerships in combating climate change, he said.
The EUDR was hailed by environmental groups as a major breakthrough when it was adopted in 2023 as, according to the World Wildlife Fund, EU imports accounted for 16% of deforestation linked to global trade in 2017.
Under the new law, exporters of cocoa, soy, timber, cattle, palm oil, rubber and coffee must certify that these commodities and products derived from them were not produced on land deforested after December 2020.
Last week, the EU said it would propose delaying the implementation of the law following protests from industry players and various nations, including Malaysia. The decision has yet to be approved by the European Parliament and council.
Separately, Johari announced that Malaysia produced 12.6 million metric tonnes of palm oil from January to August, a 10.2% increase compared with the same period in 2023.
He said this demonstrated positive growth in the sector, which contributes to about 3% of the GDP annually, attributing it to consistent government policies and the resolving of issues like labour shortages.
“If this upward trend continues, we are on track to exceed 19 million metric tonnes in production this year, which would be the highest output since 2020,” he said.
He said his ministry will continue to make use of bilateral and multilateral platforms while engaging key stakeholders to correct any misconceptions about palm oil.
“My objective is clear: to provide a balanced and comprehensive perspective on palm oil and advocate against unfounded criticisms that do not reflect the realities of our industry,” he said.