Fadillah, who is also deputy prime minister, said the regulation was a deliberate effort to increase costs and erect barriers to the entry of Malaysia’s palm oil, which would affect over 450,000 smallholders in the industry.
“This ultimately will increase poverty, reduce household incomes and harm our rural community.
“These outcomes stand in stark contrast to the EU’s commitments outlined in the UN Sustainable Development Goals,” he said.
The EUDR is a regulation introduced in 2021 aimed at limiting deforestation caused by the consumption of agricultural commodities and products around the world. It lists palm oil as a commodity that drives deforestation and forest degradation through the expansion of agricultural land.
Several smallholders went to Brussels, Belgium, last month to petition for changes to the EUDR, following protests from farmers of Felda, Felcra, the Rubber Industry Smallholders Development Authority (Risda) and the National Smallholders Association against this regulation.
It was reported that the regulation was passed yesterday at the EU Parliament.
Companies may also be required to testify that the goods were produced in line with the country’s own legislation, including respect of human rights and protection of indigenous people.
Fadillah claimed the EUDR served only to protect the EU’s oilseed market, which he said is inefficient, and unable to compete with Malaysia’s palm oil exports.
He called on the EU to provide exemptions for palm oil smallholders in the EUDR to prevent large European importers from monopolising the supply chain.
The minister also called for the union’s commitment to not classify Malaysia as a “high risk” nation for deforestation in the new regulation, because Malaysia has given its commitment to sustainable agriculture and forest conservation.
He added that the EU should acknowledge the benefits of the Malaysian Sustainable Palm Oil (MSPO) standard, and recognise it as a way to comply with EUDR.
“The MSPO standard already guarantees Malaysia’s commitment to comprehensive sustainability standards and has helped reduce deforestation from palm oil to effectively zero.
“Malaysia will (also) continue to provide sustainable and deforestation-free palm oil to our global customers,” he added.