PKR’s commerce and investment bureau chief Wong Chen said the ban had to do with sustainability standards set by the EU.
He said Malaysia’s approach to sustainability had been slow, and the palm oil ban was to be expected.
“This has resulted in the campaign against palm oil winning over consumers in the EU. The EU parliament decision merely reflects the sentiment of European consumers.
“This has been a very long time in the making. So why should Malaysia now retaliate?”
Wong said it was better for Malaysia to commit to better standards of sustainability.
“Who in the world does business by scolding their consumers?” he added.
He added that any counter ban by Malaysia would send the wrong message to its other trading partners.
“Malaysia being a net export nation, we need to maintain free and fair trade.
“The Malaysian economy is dependent on high value imports such as machinery and technology from the EU, so a trade war will only hurt us.”
Meanwhile, an academic said any tit-for-tat boycott of European products will only be symbolic without any real impact.
“The boycott has no meaning because Malaysia’s exports to the EU are not significant enough,” said Hoo Ke Ping.
Malaysia is the world’s second largest palm oil producer. Together with Indonesia, it produces nearly 90% of the global supply.
The call for a ban on using palm oil for biofuels has sparked angry reactions from Malaysia, with calls from the Ministry of Agriculture and Agro-based Industry to stop imports of EU food products such as baby milk formulas and dairy products.
Last month, Malaysia said it was reviewing the purchase of products from EU countries following the bloc’s proposal to ban palm oil biofuels.
“If we import trade products from any country, and if that country makes the decision to boycott palm oil, then our government will also stop buying from that country,” said Deputy Prime Minister Ahmad Zahid Hamidi.