Malaysian Palm Oil Industry Faces EU Challenges: Sustainability and Response Efforts

PALMOILMAGAZINE, KUALA LUMPUR – Malaysia stands as a prominent player in the global palm oil industry. Sustainability takes center stage to bolster the crucial sector, ensuring compliance with international regulations and averting deforestation and forced labor.

Ranked as the world’s second-largest palm oil producer, Malaysia grapples with fresh challenges posed by the European Union (EU), raising accusations that pose threats to its palm oil sector. The Minister of Plantation and Commodity Industry, through the Malaysian Palm Oil Council (MPOC), spearheads comprehensive efforts to rebut the allegations and affirm the continuity of palm oil production and trade within the country.

In an interview aired on TV3, Malaysia’s Minister of Plantation and Commodity Industry, Datuk Seri Johari Abdul Ghani, underscored the absence of evidence supporting the accusations. Highlighting palm oil’s unparalleled efficiency in land use compared to other vegetable oils worldwide.

Also Read: Malaysia Launches MSPO Certified Cooking Oil

“Palm oil is the most efficient vegetable oil in land use and contributes the least in deforestation globally,” he said, as Palmoilmagazine.com quoted from New Straits Times, Sunday (5/5/2024).

Johari continued palm oil industries proved its success to face uncertain economy in the globe. This would be integral part of economy in Malaysia, contributing hardly three percent of gross domestic product nationally. More than that, about 450 thuosand smallholders and three million skillful and non – skillful workers have got the advantages from palm oil industries.

The Government of Malaysia is committed to deny what EU accused by always improving every palm oil product through Malaysian Sustainable Palm Oil (MSPO) certificate. Minister Johari also explained that there are three major criteria in MSPO certificate, they are, every certificate owner should have rights on their land; the second, the planting in forest regions without having certificate would not be acknowledged; and the third, there should be no deforestation happening.

Until now, 97% of palm oil plantations in Malaysia got MSPO certificates. This showed that Malaysia is fully committed to sustainable principles in its palm oil industries. (T2)