EUDR delay offers relief for palm oil exporters
24/09/2025 (New Straits Times), Kuala Lumpur - The postponement of the European Union Deforestation Regulation (EUDR) for the second time offers temporary relief for palm oil exporters as it eases immediate regulatory risks and cost burdens.
CIMB Securities said the development is slightly positive for palm oil producers and should ease concerns of weaker palm oil demand in the first quarter of 2026 as a result of EUDR implementation.
"However, it also extends regulatory uncertainty surrounding EUDR and leaves room for further negotiations or potential policy adjustments before the new deadline," it said in a note.
Environmental groups have criticised the delay, warning that each postponement increases political pressure and reputational risks for the EU's climate agenda.
The EU has proposed postponing its anti-deforestation law by another year to end-2026, citing IT system capacity issues and supply chain concerns.
The regulation was originally scheduled to take effect on Dec 30.
CIMB Securities kept its "Overweight" call on the sector with SD Guthrie Bhd, IOI Corp Bhd, Ta Ann Holdings Bhd and Hap Seng Plantation Holdings Bhd as top picks.