27.08.202503:57:07UTC+00Malaysia Seeks to Avoid ‘Standard Risk’ Label Under EU Law

Malaysia is proactively developing strategies to maintain its competitive edge in European markets, aiming to avoid being classified as a "standard risk" nation under the EU’s forthcoming deforestation regulations. As it stands, Malaysia, along with Indonesia and Brazil, is designated as a "standard risk" country, necessitating that 3% of its shipments undergo inspections—a more rigorous requirement than that for "low risk" countries. In contrast, "high-risk" countries like Belarus, Myanmar, Russia, and North Korea are subject to the most stringent compliance measures. The EU’s Deforestation Regulation, coming into effect this December, will impact major commodities such as soy, beef, palm oil, wood, cocoa, and coffee, in addition to products like leather, chocolate, and furniture. The Ministry of Commodities stated that if Malaysia cannot achieve "low risk" classification, it will collaborate with exporters to adhere to regulations, working diligently to satisfy the EU’s qualitative assessment standards, highlighting that the current classification is based on "outdated data."