EU AND MALAYSIA AGREE TO STRENGTHEN THEIR PARTNERSHIP AND CONTINUE THEIR JOINT EFFORTS AGAINST DEFORESTATION

1. The EU and Malaysia will continue to closely cooperate ahead of the entry into application of the EU Deforestation Regulation (EUDR). This will ensure that operators sourcing commodities such as palm oil, rubber, timber and cocoa from Malaysia are fully prepared to fulfil their obligations, while promoting mutual benefits for stakeholders on both sides.

2. European Commissioner for Environment, Water Resilience and a Competitive Circular Economy Jessika Roswall acknowledged and expressed strong appreciation for Malaysia’s efforts to align its national sustainability certification schemes, notably the Malaysian Sustainable Palm Oil (MSPO) certification, with the EUDR requirements. These efforts are seen as an important support for EU operators sourcing palm oil from Malaysia to achieve compliance with the EUDR. The EU acknowledges MSPO certification as a credible sustainability scheme with a high standard digital traceability system that can facilitate operators’ compliance with EUDR when sourcing deforestation-free and legal agricommodities from Malaysia.

3. Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani has highlighted the establishment of Malaysia’s national centralised system, which aims to assist exporters in meeting EUDR requirements. This single platform integrates traceability records, polygon maps, MSPO certification data and legality confirmation.

4. Commissioner Roswall commended the constructive cooperation and Malaysia's efforts to bring deforestation levels down to unprecedented low levels and acknowledged Malaysia's commitment to continue strengthening efforts to combat deforestation, particularly driven by agricultural production. These outcomes reflect a governance system that is transparent, measurable and accountable.

5. The EU is an important market for deforestation-free and legal Malaysian commodities. Malaysia’s efforts to ensure certified commodity production and transparency of supply chains, notably in the palm oil, rubber and timber sectors are seen as very important by the EU.

6. Commissioner Roswall offered during her visit to Malaysia to organise a technical workshop on the EUDR, in the format of a virtual conference to raise further awareness of the EUDR among stakeholders sourcing relevant commodities in Malaysia, including on the role of traceability schemes, such as MSPO, under EUDR. She stressed the EU’s readiness to continue working jointly with Malaysia towards enhancing deforestation-free supply chains. Notably through a project to support smallholder farmers to supply traceable sustainable palm oil and rubber to the EU-market.

7. Commissioner Roswall and Minister Johari visited Carey Island featuring local empowerment initiatives for indigenous communities and regenerative farming guided by MSPO’s Good Agricultural Practices. The journey then moved to
SD Guthrie’s plantation, offering insights into how a global leader of oil palm plantation drives traceability and transparency across its supply chain. Further showcases of examples in Carey Island, featuring both smallholder indigenous farmers and large plantation operations, provided the European Commission and European Union regulators with a valuable opportunity to view the comprehensive sustainability measures undertaken by Malaysia’s palm oil industry. This initiative demonstrates that sustainability efforts are being rigorously implemented across the sector, regardless of scale or size of production.

5 September 2025