KUALA LUMPUR (Feb 10): The delayed implementation of the EU Deforestation Regulation (EUDR) should be used to strengthen industry readiness for complying rather than mark a pause in compliance efforts, said Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
Speaking at the 37th Palm & Lauric Oils Price Outlook Conference (POC) 2026 on Tuesday, Noraini said the additional time must be channelled towards improving preparation, implementation and inclusion across the palm oil supply chain.
Under the revised timeline, EUDR compliance is now required from Dec 30, 2026 for large and medium operators, and June 30, 2027 for micro and small enterprises, marking a second extension from the regulation’s initial end-2024 launch.
As part of Malaysia’s national response, Noraini said the government has expanded mandatory Malaysian Sustainable Palm Oil (MSPO) certification to include fresh fruit bunch (FFB) dealers. The mandatory certification becomes effective from July 1, 2025, with a six-month grace period to support industry readiness and transition.
“FFB dealers are the key link between independent smallholders and mills. By bringing them into MSPO’s certified and auditable system, Malaysia is closing a long-standing traceability gap in the supply chain, Noraini said.
She added that these reforms help ensure that smallholders remain included and competitive in international markets.
To further strengthen implementation and market confidence, Malaysia has also established the MSPO Impact Alliance, a collaborative platform involving industry players, global buyers, financiers and civil society, Noraini said.
MSPO Impact Alliance is aimed at turning sustainability commitments into practical solutions. It provides a clear action framework, allowing new approach tests, addressing on the ground challenges and scale innovations that strengthen MSPO certification and Malaysia’s position in global markets.
“Together, Malaysia’s policy reforms, the strength of the MSPO Certification Scheme and the MSPO Impact Alliance will reinforce sustainability outcomes, deforestation-free readiness and market confidence,” said Noraini.
Noraini noted that Malaysia’s palm oil export performance improved in 2025, with total export value of palm oil and palm-based products increasing to RM112.51 billion from RM109.39 billion in 2024, reflecting steady global demand and international confidence in Malaysia as a stable and responsible supplier.
Despite ongoing regulatory uncertainty, crude palm oil production reached 20.28 million tonnes in 2025, marking the highest level on record, and was the first time production exceeded 20 million tonnes, she said.
“This achievement reflects supportive operating conditions, including favourable weather, improved labour availability and the contribution of higher-yielding new plantations. Despite climate risks and geopolitical challenges, this result highlights the industry’s strength and ability to adapt,” Noraini added.
Looking ahead, Noraini said Malaysia remains positive that 2026 will offer further opportunities for growth, supported by closer international cooperation, better trade conditions and joint efforts to strengthen sustainability and resilience in the global palm oil sector.
Against this backdrop, Noraini said cooperation across the entire value chain will be crucial, and producers, traders, policymakers and end-users must work together to manage market volatility, regulatory changes and shifting demand.
