PALMOILMAGAZINE, JAKARTA – Relations between Malaysia and the European Union have entered a new phase following a joint statement in Kuala Lumpur on September 5, 2025. During the meeting, the EU Commissioner for Environment acknowledged the Malaysian Sustainable Palm Oil (MSPO) certification as a relevant national sustainability standard and confirmed ongoing efforts to align it with the European Union Deforestation Regulation (EUDR).
Several Malaysian media outlets quickly interpreted the statement as full EU recognition of MSPO. However, Yuri Thamrin, Supervisory Board Member of the Indonesia Palm Oil Strategic Studies (IPOSS), stressed that political recognition is not the same as legal endorsement. So far, there is no official EU document confirming that MSPO fully complies with EUDR requirements.
The EUDR is a strict regulation banning the entry of commodities linked to deforestation, including palm oil, coffee, cocoa, soy, beef, and timber. Products entering the EU must be proven legal, deforestation-free, and traceable to precise geographic coordinates.
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In this context, MSPO can serve as a supporting instrument. But the national certification does not automatically replace the legal obligations under the EUDR. If exporters rely solely on the MSPO label without additional verification, they risk rejection at European ports.
Malaysia Still Classified as “Standard Risk”
The EUDR applies a country benchmarking system, categorizing nations into low risk, standard risk, or high risk, based on deforestation levels, law enforcement, and data transparency. Malaysia currently falls under the standard risk category.
This means Malaysian palm oil exports remain subject to full due diligence procedures by EU importers—unlike low-risk countries, which enjoy smoother market access. While MSPO may carry political credibility, Malaysia’s legal standing in the EU market remains unchanged.
According to Yuri Thamrin, the somewhat overstated interpretation by Malaysian media is understandable, as positive narratives about MSPO help strengthen palm oil’s image both domestically and globally. Still, he underlined that diplomatic phrases such as acknowledged as credible or relevant national sustainability standard represent political language, not legal rulings.
“The EU is cautious not to give the impression that MSPO automatically qualifies as a free ticket for palm oil exports. Such an assumption would undermine the authority of the EUDR as a supranational standard,” he told Palmoilmagazine.com, quoting IPOSS, Thursday (Sept 18, 2025). (P2)
