PETALING JAYA: There is no evidence to support allegations of unsustainable palm oil practices in Malaysia, says plantation and commodities minister Johari Ghani.
In an interview with TV3, Johari explained that palm oil is the most efficient edible oil as far as land use is concerned and he noted that palm oil producers need to fulfil strict requirements to obtain the Malaysian Sustainable Palm Oil (MSPO) certification.
“There is no scientific evidence which can be used against us,” he said.
“If you talk about deforestation, this is the best edible oil … (and) contributes to the least (amount of) deforestation in the world.”
The MSPO scheme grades oil palm plantations, smallholdings and processing facilities to ensure there is no biodiversity loss, land conflict, deforestation and forced labour.
As of Jan 31 last year, more than 97% of areas planted with oil palm and more than 98% of palm oil mills in the country had received MSPO certification.
There have been numerous calls for the European Union (EU) to recognise the MSPO supply chain certification standard as a form of compliance for the EU Deforestation Regulation (EUDR), which was introduced in November 2021 to limit deforestation caused by the consumption of agricultural commodities and products around the world.
The EUDR lists palm oil as one of the commodities that drive deforestation and forest degradation through the expansion of agricultural land, and its implementation is expected to have a significant impact on the use of palm oil in the EU as well as create a negative image of Malaysian palm oil, which will lead to a reduction in exports to the EU.
Last month, the Financial Times reported that EU officials are preparing to delay key elements of the EUDR following pushback by Malaysia and other developing nations.
The report said this resistance was spearheaded by Prime Minister Anwar Ibrahim, who last year called for the EU to revise the EUDR, saying that “the EU should show some sort of appreciation. At least give recognition and recognise the efforts by Malaysia”.
The controversial proposal in the EUDR was for countries to be given different designations, with “high risk” countries subject to higher costs and increased scrutiny in addition to reputational damage. The Financial Times reported that the proposed “high risk” and “low risk” designations will not be included in the EUDR as of the implementation deadline of Dec 31 this year.
Previously, top officials from Indonesia and Malaysia, the world’s biggest producers of palm oil, were in Brussels to voice concern over the EUDR, which they believe could be detrimental to small farming businesses and exclude them from the global supply chain.
Both Southeast Asian countries have accused the EU of discriminatory policies targeting palm oil. Malaysia previously said it could stop exports to the EU over the deforestation law.
