Malaysia’s palm oil sector calls for low-risk benchmarking; EUDR timeline extended
With the recent postponement of the EU Deforestation Regulation (EUDR) by 12 months following ongoing operational and technical challenges, including the readiness of the EUDR IT system, the Malaysian Palm Oil Council (MPOC) has called on the EU to benchmark Malaysia as a low-risk country and to ensure that smallholder farmers are not excluded from international supply chains as a result of disproportionate compliance requirements.
For Malaysia and its palm oil industry, the revised timeline does not change existing obligations. Malaysian exporters will continue to comply fully with EUDR requirements and provide complete Due Diligence Statement (DDS) information to EU buyers as required under the regulation, confirming that products are legally produced, deforestation-free and traceable.
However, Belvinder Sron, CEO of MPOC, added, “The extension reflects unresolved implementation challenges within the EU system. MPOC.”
She furthered that Malaysia has advanced rapidly in traceability readiness through the National Traceability System (Sistem Kebolehjejakan Nasional (SKN)), which integrates e-MSPO, GeoSawit and SIMS into a unified, interoperable platform. The system consolidates certification data, geolocation coordinates and verified transactions, enabling EUDR-relevant information to be centrally accessed and shared with EU partners. This places Malaysia among the most prepared producer countries for transparent, deforestation-free supply chains.
Sron reiterated, “Malaysia’s mandatory MSPO certification provides a strong, nationally enforced assurance framework that can help simplify EUDR compliance for EU buyers. MPOC will continue working with EU partners to align data systems, strengthen traceability and support smallholders in meeting regulatory requirements.”
Malaysia’s sustainability progress is supported by independent assessments, including Global Forest Watch and Satelligence, which show sustained reductions in primary forest loss over the past decade. These outcomes are reinforced by the mandatory MSPO scheme and continuous improvements in monitoring and enforcement.
Under the revised EUDR framework, application deadlines are extended to 30 December 2026 for large EU operators and traders and to 30 June 2027 for micro and small enterprises. Due diligence requirements have also been streamlined, with responsibility for submitting the DDS placed on the first operator placing products on the EU market.
A mandatory European Commission review by 30 April 2026 will assess the regulation’s effectiveness and administrative burden.
MPOC stresses that this review should also reassess country benchmarking to ensure that producing countries demonstrating measurable progress in reducing deforestation are appropriately classified as low risk.
With the extended timeline and upcoming review, Malaysia aims to deepen technical cooperation with the EU and ensure a stable supply of credible, verifiable and deforestation-free palm oil for European markets.
