On 8 April 2025, the “What EUDR Means for Malaysia’s Palm Oil Industry” workshop convened key stakeholders from Malaysia’s palm oil sector, bringing together industry leaders, policymakers, and sustainability experts at Equatorial Plaza, Kuala Lumpur. The event, co-organised by the Austria Embassy – Commercial Section, WEME Earth and Bernard Business Consulting (BBC) addressed the implications of the European Union Deforestation Regulation (EUDR) on Malaysia’s vital palm oil industry.
As the EU enforces stricter sustainability standards, the EUDR aims to reduce deforestation-related greenhouse gas emissions, making it crucial for Malaysian exporters to comply. The workshop provided a timely platform to explore solutions, technologies, and policies that can help the industry navigate this evolving deforestation regulation.
Malaysia’s Response to EUDR: From Policy to Practice
Opening remarks set the tone by emphasising environmental responsibility and international cooperation. The workshop’s sessions delved deep into strategies for EUDR compliance.
Dr Meilina Ong Abdullah of MPOB highlighted the segmentation of palm oil producers—large estates, organised smallholders (OSH), and independent smallholders (ISH)—and introduced MPOB’s suite of digital tools like MPOB SIMS, GeoSawit, and TUNAS. These initiatives leverage satellite imagery, geolocation mapping, and on-the-ground support to improve traceability and sustainability.
EUDR Compliance: Risks, Requirements, and Opportunities
The EUDR introduces strict requirements for due diligence reporting, geolocation data, supply chain traceability, and accessible audits. Non-compliance could result in serious consequences, including public blacklisting, product bans, and fines of up to 4% of a company’s annual EU turnover. Unlike voluntary certification schemes such as RSPO, EUDR and MSPO are mandatory within their respective jurisdictions.
Businesses across the palm oil supply chain—not just exporters—will be impacted. Even companies that meet EUDR standards may face penalties if their upstream partners are non-compliant. This underlines the importance of shared responsibility and transparency throughout the value chain. One of the proposed solutions presented during the workshop was the use of cost-effective, AI-powered satellite imagery and geolocation mapping to ensure real-time surveillance and compliance with EU deforestation regulation.
Challenges and the Road Ahead
Despite growing readiness, several challenges remain on the path to full EUDR compliance. Workshop participants raised concerns over the practicality of collecting and managing sensitive data required for due diligence. Additionally, traceability gaps in downstream products continue to pose significant barriers.
Nevertheless, Malaysia is not standing still. MPOB’s integration of SIMS with GeoSawit demonstrates proactive leadership in building a comprehensive traceability ecosystem. The current delay in EUDR enforcement to 2026, along with a six-month grace period for smallholders, presents a critical opportunity. This buffer allows Malaysia to strengthen systems, provide training, and enhance the resilience of its palm oil exports.
Looking forward, Malaysia’s solid track record in sustainability certification and the advancement of digital infrastructure create a competitive edge. These elements position the country well to not only meet EU regulations but also to thrive in increasingly sustainability-conscious markets.
From Compliance to Sustainable Transformation
The European Union Deforestation Regulation (EUDR) marks a significant turning point for sustainable trade—demanding deforestation-free, fully traceable supply chains for key commodities, including palm oil. As these requirements redefine market expectations, Malaysian businesses must go beyond compliance and embrace long-term transformation.
One strategic response to this shift is the launch of Sustainable Plantation Solutions—a practical eBook for palm oil businesses to embed sustainability in their operations. Developed as an outcome of the 2025 workshop, this eBook offers tools and strategies to help businesses of all sizes adapt, grow, and lead in a deforestation-free future.
Download the Sustainable Plantation Solutions eBook today and take the first step towards aligning your operations with global sustainability goals through satellite imagery, geolocation mapping, and compliance with the latest deforestation regulation standards.
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Sustainable Plantation Solution
A practical strategy helping plantations grow, adapt, and lead through sustainable, effective and innovative solutions.