Latest news with #CarlBek-Nielsen
Daily Express
28-05-2025
- Business
- Daily Express
Malaysia prioritising smaller plantations in green push
Published on: Wednesday, May 28, 2025 Published on: Wed, May 28, 2025 Text Size: Malaysian Palm Oil Council chairman Datuk Carl Bek-Nielsen previously likened the classification to 'getting slapped with a fine for speeding while you have been driving below the speed limit', calling it a blow to an industry that has significantly reduced its environmental footprint. - Pic for illustration only. Kota Kinabalu: Amid ongoing scrutiny over the European Union's decision to label Malaysia a 'standard risk' under its deforestation rules, the government is focusing on sustainability and support for smallholders in the shift towards greener practices. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia is actively working to ensure that its sustainability certification systems, such as the Malaysian Sustainable Palm Oil (MSPO) standard, are accessible to and inclusive of small-scale farmers. 'What we want to do now is ensure the MSPO standards can also embrace smallholders. As of today, about 85% of our smallholders are able to comply. 'They do not have mills or refineries, but they produce the fruits. We help integrate them into the supply chain and justify their compliance,' he told reporters after launching the Malaysia International Cocoa Fair 2025 (MICF 2025) here yesterday. His remarks follow strong reactions from industry leaders, who have described the EU Deforestation Regulation (EUDR) classification as 'unjust' and damaging to the livelihoods of Malaysian producers, especially smallholders. Malaysian Palm Oil Council chairman Datuk Carl Bek-Nielsen previously likened the classification to 'getting slapped with a fine for speeding while you have been driving below the speed limit', calling it a blow to an industry that has significantly reduced its environmental footprint. Advertisement In acknowledging that Malaysia must still comply with EUDR, Johari said it needs to be done even if enforcement is not yet in effect. However, he stressed that many of Malaysia's major exporters already operate within a fully traceable and sustainable supply chain. 'A large portion of our products are exported to Europe because many of our players are large companies. These companies own the entire supply chain, from plantations, mills, and refineries to oleochemical plants, so they have full control and are able to meet export requirements,' he added. In addition to palm oil, he said, cocoa farmers are also being brought into the fold. 'I have instructed the Malaysian Cocoa Board to ensure all smallholders are registered. Every cocoa plantation must be certified. If they hold land grants from the state government, great; if not, they need to apply,' he said. Johari made it clear that the government is committed to halting deforestation, stating that any expansion in agriculture must take place on existing land. 'We must use existing land and increase yields through good agricultural practices and high-quality planting materials. That is the only way we can double our yield per hectare,' he said. Despite Malaysia's ongoing efforts, the EU's decision to classify the country as 'standard risk' has prompted questions about fairness and transparency, as the classification could result in greater scrutiny and higher compliance costs for exporters. Still, Johari remains optimistic, adding, 'Actually, our certification is already recognised. Currently, we are classified under 'standard risk', but we are working on improving this. We aim for recognition of our sustainability and traceability systems.' Earlier in his speech, he said representatives from the EU are expected to visit Malaysia in September or October to observe local practices and assess the country's regulatory readiness. 'I have also encouraged all commodity players in Malaysia, whether in palm oil, rubber or cocoa, to adopt sustainability practices if they wish to export,' he said. The push to improve sustainability systems, particularly for smallholders, is seen as essential not only for meeting international standards but also for protecting livelihoods and ensuring the long-term growth of Malaysia's commodity sectors. Also present were Deputy Plantation and Commodities Minister Datuk Chan Foong Hin and Malaysian Cocoa Board chairman Datuk Matbali Musah. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
26-05-2025
- Business
- The Star
EU: All countries subject to deforestation risk ratings
PETALING JAYA: The 'standard risk' status given to Malaysia under a deforestation law came about following an assessment all countries had gone through under a new benchmarking system, says the European Union to Malaysia. Responding to an outcry from Malaysia over the classification, the EU explained that its benchmarking system would rate countries either as low, standard or high risk, based on their risk of deforestation when producing seven commodities – namely cattle, cocoa, coffee, oil palm, rubber, soya and wood. The assessment of the countries was based on a methodology of combining two quantitative thresholds to distinguish low-risk countries from standard risk ones. These include an absolute threshold (below 70,000ha of annual forest loss) and a relative one (below 0.2% of annual forest loss of their total forest area). The EU said in statement that Malaysia, which exceeded one or both of these thresholds, had been classified as standard risk by looking at its overall deforestation and not deforestation linked to any of the seven commodities in particular. It has been reported that the Malaysian Palm Oil Council (MPOC) wanted the European Commission to explain its benchmarking methodology used that led to the 'standard risk' label given to Malaysia under the European Union Deforestation Regulation (EUDR). 'The 'standard risk' status for Malaysia does not recognise at all the progress and achievements made by the Malaysian palm oil industry in reducing deforestation and producing sustainable palm oil for European consumers,' MPOC chief executive officer Belvinder Sron said in a statement on Friday. He cited latest independent satellite data which showed that Malaysia's oil palm sector had transformed its environmental footprint for the better. On Saturday, MPOC chairman Datuk Carl Bek-Nielsen criticised the 'standard risk' classification, saying that it was unjust as it could lead to palm oil being excluded from the EU market despite the country's progress in curbing deforestation and raising sustainability standards in the oil palm sector. In its response yesterday, the European Union said that all countries went through the same process under the EUDR after a new benchmarking system (country classification) was adopted on May 22. It said that the system was landmark legislation that promotes the consumption of 'deforestation-free' products in the EU with the aim of reducing the impact on global deforestation and forest degradation.
The Star
25-05-2025
- Business
- The Star
Industry's green efforts red-flagged
PETALING JAYA: Malaysia's 'unjust' classification under the European Union Deforestation Regulation (EUDR) that paves the way for its palm oil to be excluded from the EU market has been criticised by local palm oil producers. Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen has slammed the classification of Malaysia as a 'standard risk' under EU's deforestation rules. He called the decision 'very unfortunate and unjust', given the country's significant progress in curbing deforestation and raising sustainability standards in the palm oil sector. 'It is equivalent to getting slapped with a fine for speeding while you have been driving below the speed limit. 'I find it very unfair and a slap in the face to our industry, which has made tremendous efforts that have resulted in the area under oil palm reducing for the first time in over 100 years,' he told The Star . He added that countries designated as 'high risk' or 'standard risk' may face more stringent oversight and elevated compliance requirements. 'These countries are expected to encounter significantly higher compliance costs due to stringent regulatory measures imposed by the EU. 'They will also be subject to intensified scrutiny from competent authorities within the EU,' he added. According to the European Commission, the EUDR's country risk classification considers the rate of deforestation and forest degradation, the rate of expansion of agriculture land for relevant commodities, and their production trends. Malaysian Palm Oil Association (MPOA) chief executive officer Roslin Azmy Hassan echoed these concerns, describing the risk of EUDR becoming a non-tariff trade barrier and disproportionately affecting commodity producers in the Global South. 'For Malaysia, this could translate into palm oil producers, especially smallholders, being excluded from the EU, despite their compliance with national sustainability standards like the Malaysian Sustainable Palm Oil (MSPO) certification. 'Penalising them undermines their livelihoods and jeopardises broader socio-economic development goals,' he said. Roslin added that EUDR could push EU importers and processors to bypass Malaysian smallholders entirely, opting for suppliers in 'low-risk' countries to avoid compliance hurdles. On May 22, the European Commission announced the EUDR country benchmarking results that put Malaysia into the 'standard risk' category. 'The classification does not reflect Malaysia's well-established and verifiable commitment to sustainable development and responsible land stewardship,' Roslin said. 'Malaysia is one of the few countries that has promised to keep at least 50% of its land covered by forests. 'This pledge was made at the 1992 Rio Earth Summit and is still upheld today.' He added that the MSPO certification, a mandatory national standard covering more than 96% of the country's palm oil supply chain, was built on internationally recognised environmental, social and governance (ESG) principles. Roslin also questioned the fairness of the classification, highlighting that several EU member states with historical deforestation records were designated as 'low risk'. 'This discrepancy raises serious concerns about the objectivity, transparency and fairness of the EUDR framework,' he said. Despite ongoing consultations and Malaysia's participation in engagement platforms such as the Joint Task Force with the EU, Roslin said these efforts have largely failed to yield substantive outcomes. 'Too often, these dialogues have turned into symbolic exercises, lacking in tangible policy outcomes or genuine collaboration. 'This raises serious questions about the integrity of the consultative process and suggests that the current regulatory path represents not just a technical misjudgment, but a discriminatory trade measure targeting palm oil while ignoring parallel issues in other regions,' he added. When contacted, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said clarification will be sought from the European Commission regarding the methodology used for the benchmarking.
Yahoo
14-03-2025
- Business
- Yahoo
United Plantations Berhad's (KLSE:UTDPLT) stock price dropped 7.7% last week; private companies would not be happy
Significant control over United Plantations Berhad by private companies implies that the general public has more power to influence management and governance-related decisions The top 2 shareholders own 54% of the company Institutional ownership in United Plantations Berhad is 15% A look at the shareholders of United Plantations Berhad (KLSE:UTDPLT) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. As a result, private companies as a group endured the highest losses last week after market cap fell by RM1.1b. In the chart below, we zoom in on the different ownership groups of United Plantations Berhad. Check out our latest analysis for United Plantations Berhad Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in United Plantations Berhad. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see United Plantations Berhad's historic earnings and revenue below, but keep in mind there's always more to the story. We note that hedge funds don't have a meaningful investment in United Plantations Berhad. Our data shows that Brothers (Holdings) Pte. Ltd. is the largest shareholder with 48% of shares outstanding. Employees Provident Fund of Malaysia is the second largest shareholder owning 6.1% of common stock, and Perbadanan Kemajuan Ekonomi Islam Negeri Perak holds about 4.2% of the company stock. In addition, we found that Carl Bek-Nielsen, the CEO has 1.3% of the shares allocated to their name. A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. We can see that insiders own shares in United Plantations Berhad. The insiders have a meaningful stake worth RM502m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling. With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over United Plantations Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Our data indicates that Private Companies hold 53%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It's always worth thinking about the different groups who own shares in a company. But to understand United Plantations Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with United Plantations Berhad . Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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