KUALA LUMPUR: Malaysia takes the issues of deforestation and forest degradation caused by the expansion of agricultural land seriously and is working to counter negative narratives, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the Minister of Plantation Industries and Commodities, said that the palm oil industry has faced its fair share of sceptics and debates.
“The negative campaigns and unfair narratives, which we view as nothing less than an attempt to create another trade barrier for palm oil, have led us to join forces with other palm oil producing countries to ensure that our palm oil is not grossly misrepresented,” he said during his keynote address at the 34th Annual Palm and Lauric Oils Price Outlook Conference & Exhibition 2023 (POC23).
In November 2021, the European Union introduced the European Deforestation-free Regulation (EUDR) as part of the EU Green Deal, which aims to limit deforestation caused by the consumption of agricultural commodities and products from around the world.
“The regulation lists palm oil as one of the commodities that drive deforestation and forest degradation through the expansion of agricultural land. As a result, the implementation of EUDR is expected to significantly impact the use of palm oil in the EU and create a negative image of Malaysian palm oil, which will lead to a reduction in exports to the EU and possibly globally,” said Fadillah.
He added the Malaysian palm oil industry must continue its ongoing efforts to ensure that palm oil production does not negatively impact environmental well-being.
“It is important for palm oil producing nations to highlight the measures we have taken in order to achieve that goal. At the same time, it is pertinent for the Malaysian palm oil industry to continue to support the production of sustainable palm oil, particularly the Malaysian Sustainable Palm Oil (MSPO) in line with world demand,” he said.
He stressed that Malaysian palm oil meets the stringent requirements of consumer markets and is risk-free for its buyers. Through MSPO, sustainability issues such as biodiversity loss, land conflict, deforestation, and forced labour are addressed.
“I would like to stress that food safety concerns must also be given the utmost priority, and I commend all the efforts taken by the industry to ensure that health and safety are not compromised,” he said.
The government, Fadillah said, has been aggressively promoting the certification of palm oil to industry players since the initiation of the MSPO certification standard. As of Jan 31, more than 97% of oil palm planted areas and more than 98% of palm oil mills in Malaysia are MSPO certified.
“This industry has contributed significantly to our gross domestic product, foreign exchange earnings including generating employment opportunities and in uplifting the standard of living in Malaysia. This industry continues to be the main driver of the agricommodity sector in Malaysia,” he added.