PETALING JAYA: The European Union’s (EU) decision to formally extend the implementation timeline of the EU Deforestation Regulation (EUDR), by 12 months does not change existing compliance obligations for Malaysian palm oil exporters, the Malaysian Palm Oil Council (MPOC) says.
It does, however, provide additional time for the industry to push for Malaysia to be benchmarked as a low-risk producer country, the council said.
MPOC noted the EU has announced a further postponement of the EUDR, extending its application by 12 months following ongoing operational and technical challenges, including the readiness of the EUDR IT system.
Under the revised EUDR framework, application deadlines are extended to Dec 30, 2026 for large EU operators and traders and to June 30, 2027 for micro and small enterprises.
Further, due-diligence requirements have also been streamlined, with responsibility for submitting due diligence statement (DDS) placed on the first operator placing products on the EU market.
In a statement, MPOC said the revised timeline does not change existing obligations for Malaysia and its palm oil industry.
“Malaysian exporters will continue to comply fully with EUDR requirements and provide complete DDS information to EU buyers as required under the regulation, confirming that products are legally produced, deforestation-free and traceable,” it said.
By April 30, 2026, a mandatory European Commission review will be carried out to assess the regulation’s effectiveness and administrative burden.
To this end, MPOC said this review should also reassess country benchmarking to ensure that producing countries demonstrating measurable progress in reducing deforestation are appropriately classified as low risk.
MPOC chief executive officer Belvinder Sron said the extension reflects unresolved implementation challenges within the EU system.
“MPOC calls on the EU to benchmark Malaysia as a low-risk country and to ensure that smallholders are not excluded from international supply chains as a result of disproportionate compliance requirements,” she said.
MPOC noted the country has advanced rapidly in traceability readiness through the National Traceability System, which integrates e-Malaysian Sustainable Palm Oil, GeoSawit and Sawit Intelligent Management Systems, into a unified, interoperable platform.
“The system consolidates certification data, geolocation coordinates and verified transactions, enabling EUDR-relevant information to be centrally accessed and shared with EU partners. This places Malaysia among the most prepared producer countries for transparent, deforestation-free supply chains,” it said.
