The Malaysian Palm Oil Council (MPOC) expressed its approval on Thursday regarding the European Union’s decision to postpone the enforcement of its deforestation regulation by one year, although it noted that uncertainties surrounding the implementation of the rule raise concerns about its viability.
The EU Deforestation Regulation (EUDR), which was initially set to be enforced in December 2025, will now take effect in December 2026. This regulation aims to ensure that commodities, including palm oil, cocoa, and soy, are not associated with deforestation.
MPOC indicated that companies within the Malaysian palm oil sector have already made substantial investments to comply with the regulation but find themselves in a state of uncertainty due to the lack of clarity on its implementation. “The continued uncertainty creates an unsustainable burden for responsible businesses,” stated MPOC Chief Executive Officer Belvinder Sron, who urged European policymakers to develop a more equitable and scientifically informed framework.
In recent years, Malaysia has enhanced its sustainability standards for palm oil, particularly through the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which bans new planting in natural forests and protected areas. The EU has acknowledged the MSPO; however, Malaysia continues to be classified as “standard risk” under the EUDR. MPOC argued that this classification fails to represent Malaysia’s advances in deforestation, referencing data from Global Forest Watch that indicates primary forest loss decreased by 57 percent from 2015-2017 to 2020-2022, with further declines anticipated by 2024.
The Council called on the EU to utilize the extended timeline to reform the EUDR classification system, ensuring it accurately reflects real-world environmental outcomes, rewards sustainable practices, and offers clear pathways for countries to improve their status.
Malaysia ranks as the world’s second-largest producer of palm oil, a commodity extensively utilized in food, fuel, and consumer goods.
Published on September 25, 2025.
