MPOC Welcomes EUDR Delay But Highlights Regularity Flaws
25/09/2025 (Business Today) - The Malaysian Palm Oil Council (MPOC) has welcomed the European Union’s decision to delay the implementation of its EU Deforestation Regulation (EUDR) by 12 months to December 2026, but cautioned that the regulation remains unworkable without a clear implementation pathway.
The Council said the extension offers a “crucial opportunity” for Brussels to address structural and operational flaws in the framework, while recognising Malaysia’s progress in sustainable palm oil production.
“Despite the challenges posed by the current EUDR framework, the Malaysian palm oil sector remains committed to sustainable production and constructive engagement with the EU. However, unless the EU develops a very clear understanding of on-the-ground realities, we question whether this regulation is truly workable in its current form,” said MPOC Chief Executive Officer Belvinder Sron.
According to MPOC, Malaysian palm oil companies have already invested heavily in compliance preparation, at significant cost, but the lack of clarity on how the rules will be applied leaves businesses in limbo. “The continued uncertainty about the regulation’s direction creates an unsustainable burden for responsible businesses,” the Council said.
MPOC also criticised the EU’s risk classification system, which placed Malaysia under a “standard risk” category despite what it described as superior environmental performance compared to some EU member states classified as “low risk.”
MPOC said Malaysia’s recent record includes a 57% reduction in primary forest loss between 2015–2017 and 2020–2022. 13% further decline in 2024 and falling out of the top 10 countries for tropical primary forest loss for the first time.
The Council noted that Malaysia enforces the Malaysian Sustainable Palm Oil (MSPO) 2022 standard, which prohibits the conversion of natural forests, protected zones, and high conservation value areas after 31 December 2019.
MPOC urged the EU to use the extended timeline to reform the EUDR’s classification framework, ensuring that it reflects measurable environmental outcomes rather than geography. Recognises countries with proven forest conservation results. Rewards sustainable practices and industry transformation. Provides a clear pathway for countries to improve their classifications.
The council said it reiterated its commitment to sustainable palm oil production and pledged to continue engaging constructively with EU policymakers. “Economic development and environmental stewardship can go hand in hand,” the Council said, calling on the EU to create a more equitable and science-based system that promotes global sustainability while recognising the achievements of responsible producers.