AMINVESTMENT Bank Bhd has maintained a neutral outlook on Malaysia’s plantation sector despite the European Commission’s decision to classify the country as ‘standard risk’ under the European Union Deforestation Regulation (EUDR).
The classification, which determines the level of documentation and due diligence required for exports into the EU, will take effect on 30 December 2025.
In a research note, the investment bank said the classification is unlikely to significantly affect major Malaysian palm oil exporters.
“Although the Malaysian Palm Oil Council (MPOC) is contesting the EU’s benchmarking methodology, the impact on large industry players is not expected to be material,” it said.
“They are already preparing for the EUDR, having commenced trial shipments of EUDR-compliant palm oil products.”
The Bank noted that the next review of the EU’s risk classification will take place in 2026, at which point Malaysia will have the opportunity to submit updated data for consideration. - June 6, 2025
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