Malaysia

Fadillah bullish meet on EU deforestation law will be fruitful

DPM in Brussels on joint mission with Indonesia to fight palm oil sector’s corner

Updated 3 years ago · Published on 30 May 2023 11:31AM

Fadillah bullish meet on EU deforestation law will be fruitful
Deputy Prime Minister Datuk Seri Fadillah Yusof points out that palm oil is the most resource-efficient vegetable oil. – Pixabay pic, May 30, 2023

BRUSSELS – Datuk Seri Fadillah Yusof is confident that a meeting here on the European Union’s Deforestation Regulation (EUDR) will be fruitful amid the higher level of engagement.

He noted that all this while, engagements had been at the officer level. 

“Now the commitment is from the ministry level. Not only ministry. I am coming to represent the government of Malaysia, not only as plantation and commodities minister but also deputy prime minister,” he told Malaysian media at a press conference here today.

“So that shows our commitment towards sustainability, and not only what is good for Malaysia but the whole world,” he added.

Fadillah’s first official visit to meet with the European Union is as a joint mission with Indonesia, the biggest producer of palm oil, under the Council of Palm Oil Producing Countries.

Earlier this year, Fadillah and Indonesia’s Economic Affairs Coordinating Minister Airlangga Hartarto mutually agreed to protect the interests of the palm oil sector by stepping up efforts to deal with the discrimination against the product.

Combined, Malaysia and Indonesia contribute more than 80% to the global palm oil market.

As part of the mission, they will be meeting the EU’s Environment, Oceans, and Fisheries Commissioner Virginijus Sinkevičius, its High Representative for Foreign Affairs and Security Policy Josep Borrell-Fontelle, as well as Frans Timmermans, who is executive vice-president of the European Commission for the European Green Deal and European commissioner for climate action.

The ministers will also be meeting European Parliament Vice-President Heidi Hautala, and EU International Trade Chairman Bernd Lange. A working luncheon with industry leaders and chief executives is also scheduled.

Malaysia stands ready to assist the EU, said Fadillah.

“What we want is more engagement because the decision taken by them (the EU) has an impact on Malaysia, not only from an economic or trade perspective, but also on smallholders,” the deputy prime minister said.

Malaysia has about 700,000 smallholders in agri-commodities, of which about 450,000 are in the palm oil sector. 

Hence, he said engagement is vital and, at the same time, Malaysia also wants the EU to recognise all the actions taken by the government over the years.

Malaysia has underscored the need for a balanced approach between achieving development goals and climate ambition. The country says the United Nations Sustainable Development Goals remain its utmost priority.

The Malaysian Sustainable Palm Oil (MSPO) standard is one of Malaysia’s many sustainability initiatives, said Fadillah. He added that among the country’s millers, 96% have achieved MSPO certification, while on the plantation side the figure is 98%, including smallholders.

It is to be noted that there are two types of smallholders – firstly, those who are organised, such as those under the Federal Land Development Authority (Felda) and the Federal Land Consolidation and Rehabilitation Authority (Felcra), and secondly, those who have family-owned smallholdings.

“We are also helping them (family-owned smallholdings) to make sure that they are certified,” he added.

Fadillah stressed that it is an undeniable fact that palm oil is the most resource-efficient vegetable oil.

Oil palm trees require considerably less land to produce the same yield compared to soya bean or rape seed oil, he said.

Oil palm produces more oil per hectare than any other major vegetable oil crop at 3.3 tonnes/ha. In comparison, soybeans produce just 0.4 tonnes/ha. 

Malaysia also has the Malaysian Timber Certification Scheme and Sustainable Forest Management practices, with a view to facilitating access to the EU single market. – Bernama, May 30, 2023

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