Malaysia's palm oil industry faces EU law challenges, opportunities

January 14, 2025 (MLN): The European Union’s pending anti-deforestation law presents both challenges and opportunities for Malaysia’s palm oil industry.

This was stated by Malaysia’s deputy commodities minister at an industry conference on Tuesday.

Deputy Minister Chan Foong Hin said it was crucial for the industry to understand the impact of the EU law so that domestic practices could be adapted and market access maintained, as Reuters reported.

Last month, the European Union approved a one-year delay to its landmark deforestation law, which bans the importation of palm oil, soy and other goods linked to the destruction of forests.

The bill is now due to take effect from Dec. 30, 2025.

The law requires companies and traders selling soy, beef, coffee, palm oil and other products in the EU market to provide proof their supply chains do not contribute to deforestation.

Malaysia and Indonesia, the world’s largest exporters of palm oil, have previously complained that the law and implementation rules are discriminatory.

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