Malaysia reviews measures to achieve low-risk status under EU deforestation rules

KUALA LUMPUR: The special committee formed in response to the European Union Deforestation-Free Products Regulation (EUDR) has reviewed strategies and measures across ministries to help Malaysia achieve low-risk country status under the EUDR framework.

Plantation and Commodities Minister Datuk Seri Johari Ghani said the review evaluates the benchmarking criteria assigned to each ministry.

"Among the steps are the coordination of forest data reporting and the enforcement of forestry-related laws by the Natural Resources and Environmental Sustainability Ministry (NRES), and compliance with laws protecting human rights, including the rights of indigenous communities, by the Rural and Regional Development Ministry.

"It also includes the incorporation of sustainability elements into free trade agreement negotiations by the Investment, Trade and Industry Ministry," he said during the question-and-answer session in the Dewan Rakyat today.

He was responding to Chong Zhemin (PH-Kampar), who enquired about the progress and achievements in removing Malaysia from the standard-risk status under the EUDR.

In June, it was announced that the government had formed a special committee to spearhead the country's response to the EUDR, aiming to ensure continued access to the European Union market and strengthen sustainability compliance across key export sectors.

Chaired by Johari, the committee involves three key ministries: the Ministry of Plantation and Commodities, NRES, and the Investment, Trade and Industry Ministry. Their respective secretaries-general co-chair the working committee.

Johari added that the ministry had consistently sought to ensure that the implementation of the EUDR does not negatively impact the country's agri-commodity sector.

He also said several proactive measures had been taken to remove Malaysia from the standard-risk status under the EUDR, including the establishment of the special committee itself.

"There are three risk levels under the EUDR: low risk, standard risk, and high risk. Malaysia is currently classified under standard risk.

"Using a whole-of-government approach, the cabinet at its meeting on June 11 decided to establish a national-level special committee to address the impact of EUDR implementation, Malaysia's classification under standard risk, and to discuss the appropriate follow-up actions."

A key priority of the committee is to secure Malaysia's classification as a low-risk country under the EUDR framework. This includes strengthening national traceability systems and ensuring the provision of credible forest data to the Global Forest Resources Assessment by the United Nations Food and Agriculture Organisation, which forms the quantitative basis for the EUDR's country risk assessment.

The committee will also act as the central channel for Malaysia's engagement with the European Commission, including the submission of official datasets, policy updates, and participation in technical exchanges.

The whole-of-government effort underscores Malaysia's firm commitment to sustainability across key commodities, including palm oil, rubber, timber, and cocoa, which collectively generated RM186 billion in global export value in 2024.

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