MPOC Seeks EC Clarification On Malaysia's 'Standard Risk' Status

KUALA LUMPUR, May 23 (Bernama) -- The Malaysian Palm Oil Council (MPOC) will request clarification from the European Commission (EC) on its full benchmarking methodology used in its assessment on the ‘standard risk’ status given to Malaysia under the European Union Deforestation Regulation (EUDR).

The announcement made by the EC yesterday has confirmed reports that Malaysia was given a ‘standard risk’ status under the EUDR country benchmarking system, while other countries with meagre records on forest loss and degradation, including EU member states, were given ‘low risk’ status.

MPOC chief executive officer Belvinder Sron said the EC’s decision discredits the whole country benchmarking system as the EUDR should encourage genuine progress, especially from countries like Malaysia that have already shown leadership in sustainable forest management

“We will request clarification from EC on its full benchmarking methodology used in its assessment. This will be our top priority.

“The ‘standard risk’ status for Malaysia does not recognise at all the progress and achievements made by the Malaysian palm oil industry in reducing deforestation and producing sustainable palm oil for European consumers,” she said in a statement.

Belvinder noted that Malaysia has consistently demonstrated a strong and measurable commitment to forest conservation, achieving a significant reduction in deforestation over the past ten years.

She said the latest independent satellite data from Satelligence showed Malaysia’s palm oil sector has transformed its environmental footprint for the better, and confirms its leadership in tackling deforestation, while even the older UN data used by the EU highlighted the country’s strong performance

“Furthermore, Global Forest Watch provided transparent, accessible, and consistent data, showing that Malaysia retains far more primary forest than many historically industrialised nations, and we are doing better at preserving it.

“Between 2014 and 2023, Malaysia reduced primary forest loss by 65 per cent, outpacing global peers. In 2024 alone, we achieved a further 13 per cent reduction, marking the first time Malaysia has dropped out of the global Top 10 for tropical primary forest loss,” she said.

Meanwhile, MPOC chairman Datuk Carl Bek-Nielsen said the Malaysian palm oil companies and smallholders have made significant strides to reduce primary forest loss and forest degradation.

This is further exemplified through the mandatory implementation of the Malaysian Sustainable Palm Oil (MSPO) certification scheme since 2020, which has led to a substantial reduction of forest loss in Malaysia.

“The EC knows that we have a far better record on this than some European states. And yet they have rewarded its own members with ‘low risk’ status. This apparent favouritism will inevitably cause resentment instead of building bridges for closer cooperation,” he added.

-- BERNAMA