Don’t be so rigid about palm oil, Anwar tells EU

Prime Minister Anwar Ibrahim has appealed to the European Union (EU) to “not be so rigid” with a deforestation rule that has acted as a sanction against Malaysia’s palm oil exports.

Anwar said it had since been a challenge to export palm oil products to Europe “because of sanctions imposed on us”.

“It is not for one region to impose (such sanctions), we think it is unjust and will impair the progress and development of our economy,” he said.

“To do justice to this region, I explained that we have taken all necessary measures, reforestation, including the peat soil areas.

“They should allow us to function economically and not be so rigid,” he said at a joint press conference with the visiting German president, Frank-Walter Steinmeier, who is on a two-day visit.

In December, the EU agreed on a deforestation law that required companies to show that their commodities were not grown on land deforested after 2020, or risk hefty fines.

Anwar said Malaysia is concerned about climate change, however negotiations need to take place.

The EU is the third-largest palm oil market for Malaysia.

Anwar said Petronas was interested in expanding its export of liquefied natural gas (LNG) to Germany, as gas supplies to Europe have been affected by the war in Ukraine, which led to Russia cutting off supplies to the EU.

Anwar said other matters discussed with Steinmeier include the growing level of Islamophobia in parts of Europe, the Russia-Ukraine conflict, as well as investments and developments in the country.

Steinmeier said that German companies are committed to their investment in Malaysia. There are 700 German companies in Malaysia, who employ around 65,000 Malaysians.

“We want to intensify our relations and Malaysia can be a place where German companies can diversify,” he said.

Germany is Malaysia’s largest trading partner from the EU. In 2022, Malaysia’s total trade with Germany increased by 10.9% to RM59.87 billion compared to RM53.99 billion in 2021.

Tags: Malaysia, palm oil, deforestation, Market, rigid, exports, EU, European Union