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EU's 'standard risk' label on Malaysian palm oil clouds upcoming FTA talks
EU's 'standard risk' label on Malaysian palm oil clouds upcoming FTA talks

New Straits Times

time28-05-2025

  • Business
  • New Straits Times

EU's 'standard risk' label on Malaysian palm oil clouds upcoming FTA talks

KUALA LUMPUR: The European Union's (EU) 'standard risk' label on Malaysian palm oil has thrown a wrench into next month's free trade agreement (FTA) talks, economists said. The classification, they said, sends a provocative signal at a time when both sides are hoping to reboot stalled discussions after more than a decade. Williams Business Consultancy Sdn Bhd director Dr Geoffrey Williams said it also reflects the EU's intent to use non-tariff barriers as its main negotiating tool, echoing past failed strategies. "This is a disappointing start to the FTA talks and signals that the EU intends to leverage non-tariff trade barriers based on their own unverified and disputed sustainability criteria as their main negotiation tool. "It is exactly the same bullying tactic used by the United States (US), but through non-tariff barriers rather than tariffs," he told Business Times. Over A Decade Of Pause Malaysia and the EU are set to resume FTA negotiations next month, nearly 13 years after talks stalled over disagreements on procurement access and sustainability requirements. Universiti Utara Malaysia Associate Professor Dr Irwan Shah Zainal Abidin said the 'standard risk' classification could negatively impact the tone of the upcoming talks, especially since palm oil remains one of Malaysia's key export commodities to the EU. "This classification, rather than a 'low risk' label, will certainly have negative implications for the renewed FTA discussions, particularly for Malaysia," he said, adding that palm oil will be a central point of contention. Formal negotiations between Malaysia and the EU were first initiated in 2010 but were suspended in 2012 after little progress was made on key issues. Williams said the current posture from the EU suggests little has changed since the talks first began. The negotiations, he said, were hindered by two key demands from the EU namely access to federal government procurement and entry into Malaysia's automotive sector. To advance these goals, Williams said the EU employed non-tariff sustainability restrictions on palm oil and imposed stringent technological standards on electrical and electronic products as bargaining tools. "They failed to reach an agreement then and it looks like they intend to pick up where they left off. So the EU-Malaysia FTA risks becoming a repeat of history, ending in either overly extended negotiations or complete failure again," he added. Irwan said the EU's risk assessment may be based on outdated data or misconceptions, rather than the current realities on the ground. He argued that the 'standard risk' label is deeply flawed and should be contested, suggesting it likely stems from inadequate engagement or entrenched bias against palm oil. "The reality is that deforestation linked to palm oil is no longer the case in Malaysia," he added. Irwan also pointed to the implementation of the Malaysian Sustainable Palm Oil (MSPO) certification, which has been mandatory since 2020, as a key policy shift that the EU appears to have overlooked. "There is a need for the EU to consider country-specific contexts. Not all palm oil production leads to deforestation, certainly not in Malaysia," he added. In contrast to the EU's rigid and outdated frameworks, Williams said Malaysia has demonstrated greater agility in forging trade deals. He pointed to Malaysia's swift conclusion of an FTA with the United Kingdom and a tariff arrangement with the US within weeks. This, he added, highlighted the stark difference in negotiating pace compared to the EU, whose "efforts remain bogged down". Sharp Criticism The EU's recent move to assign Malaysia a 'standard risk' designation under its EU deforestation regulation (EUDR) has also drawn sharp criticism from the Malaysian Palm Oil Council. It argued that the label unfairly undermines Malaysia's national sustainability standards, particularly the MSPO scheme. Williams echoed this concern, calling the designation a unilateral and protectionist tool. "It is simply a way of making life difficult for Malaysian palm oil producers by saying the MSPO standards are too weak and pose a sustainability risk. "It is a unilateral negative product label rather than an actual ban," he said. Under the EUDR, countries and commodities are classified into three categories namely low risk, standard risk and high risk. The classifications determine the level of scrutiny and due diligence required for goods such as palm oil, soy and timber entering the EU market. A 'low risk' status means simplified checks, while 'high risk' implies stringent controls. 'Standard risk', which Malaysia has been assigned, subjects exporters to the full due diligence requirements under the regulation. "A 'low risk' designation would reassure EU buyers that Malaysian palm oil was generally safe from compliance breaches that could halt production or sales," Williams said. "But with the 'standard risk' tag, it damages brand perception, consumer confidence and puts pressure on Malaysia to engage EU consultants to fix so-called operational gaps." Efficient Sector, One Of The Best According to Irwan, Malaysia's palm oil sector is among the most efficient globally and contributes positively to climate goals. This efficiency is reflected in palm oil's significantly higher yields compared to other oil crops such as sunflower and soy, along with its role as a carbon sequester. Labelling Malaysia as 'standard risk' without accounting for these advantages, he argued, overlooks the broader environmental context. Given this, he stressed that any credible risk classification must be based on a holistic evaluation of a country's overall climate impact. "Any country that has achieved zero conversion of natural forest should not be classified as 'standard risk'. "There is still time for Malaysia to engage with the EU and highlight the real progress being made, especially by smallholders working to reduce forest loss and degradation," he added. Malaysia exported about 1.07 million tonnes of palm oil to the EU in 2023, representing about 7.1 per cent of its total palm oil exports. The export value of crude palm oil alone amounted to roughly US$446 million, with a volume of 392,811 tonnes, making the EU one of Malaysia's key markets. Despite this, trade volumes have shown signs of strain. Between July 2022 and March 2023, Malaysia's palm oil exports to the EU fell by around 30 per cent, totalling 426,000 tonnes over the period. The decline has been attributed in part to regulatory uncertainty and shifting EU sustainability requirements.

Kelantan prep for massive revamp ahead of new season
Kelantan prep for massive revamp ahead of new season

The Star

time12-05-2025

  • Business
  • The Star

Kelantan prep for massive revamp ahead of new season

KOTA BARU: Kelantan will undergo a major overhaul to be a more competitive squad in the Malaysian League, especially the Super League for the 2025-2026 season. Their chief executive officer, Datuk Mohd Irwan Rizal Ali Napiah said that his current focus, together with the leadership team, is to ensure that outstanding salary arrears owed to players from last season can be resolved quickly. 'We will bring in quality players and coaching staff to ensure Kelantan can compete with other teams in next season's league campaign,' said Irwan. 'The most important thing right now is that we do not want to face the same (debt) issues this season. 'We want to begin the new league season debt-free.' Irwan said although the club would carry out changes in players and coaches this season, spending will be done prudently according to financial capacity. Previously, Kelantan president Rozi Muhamad admitted there were still outstanding arrears owed to players for the 2024-2025 season, but stressed that efforts had been actively made to settle them soon. Irwan said the club management were also working to ensure all requirements set by the Malaysian Football League (MFL) for this season's club licensing would be fulfilled. 'A few remaining documents are being finalised, and we are committed to meeting every requirement before the final decision is announced by the MFL. 'I am confident Kelantan will continue to compete in the M-League,' he added. — Bernama

Cops nab 6 suspects in gunshot death of man in Sarawak
Cops nab 6 suspects in gunshot death of man in Sarawak

Free Malaysia Today

time27-04-2025

  • Free Malaysia Today

Cops nab 6 suspects in gunshot death of man in Sarawak

Padawan police chief Irwan Hafiz Radzi said the suspects were arrested at various locations between 4pm and 5.30pm yesterday. (Bernama pic) PETALING JAYA : Police have arrested six men suspected of involvement in the death of a man in Kuching, Sarawak, who was found dead in a car with a gunshot wound to the head. Padawan police chief Irwan Hafiz Radzi said the suspects, aged 21 to 45, were arrested at various locations between 4pm and 5.30pm yesterday, Kosmo reported. Police also seized a car and a gun with 10 bullets, he added. It is understood that one of the suspects is a traffic policeman from Bukit Aman, and the seized gun belongs to him. 'The motive behind the incident is still being investigated. The investigation is being carried out under Section 302 of the Penal Code (for murder),' he was quoted as saying. Three of the suspects were remanded for four days, while the other three were remanded for seven days at the Kuching magistrates' court today, Bernama reported. Yesterday, Irwan said police at the Batu Kawa station in Kuching were informed of the death by two men at 5.30am. 'The two men brought their friend to the station, where the Padawan investigative team and medical officers confirmed the 34-year-old was dead,' he was quoted as saying.

6 suspects in shooting case arrested within 12 hours
6 suspects in shooting case arrested within 12 hours

New Straits Times

time27-04-2025

  • New Straits Times

6 suspects in shooting case arrested within 12 hours

KUCHING: Police are confident of solving the shooting case involving a man in Jalan Stephen Yong, Batu Kawa, following the arrest of six suspects yesterday. Padawan police chief Superintendent Mohd Irwan Hafiz Md Radzi said the suspects, aged between 26 and 45, were arrested at various locations in the city between 4pm and 5.30pm. Police also seized a car and a pistol loaded with 10 bullets during the operation. "Initial investigations suggest the group was involved in the shooting incident. The motive is still under investigation," he said. Irwan said police unravelled the case within 12 hours, with all suspects to be remanded for further investigation under Section 302 of the Penal Code for murder. Earlier, around 5.30am, two men arrived at the Batu Kawa police station with an unconscious man in a Perodua Myvi. They claimed their friend had been shot while they were passing through Jalan Stephen Yong. The victim had sustained gunshot wounds to the head and right arm.

Man found dead in car with gunshot to head
Man found dead in car with gunshot to head

Free Malaysia Today

time26-04-2025

  • Free Malaysia Today

Man found dead in car with gunshot to head

Padawan police chief Irwan Hafiz Radzi said the two men claimed they found their friend slumped in the car, and they believe he had been shot while driving. PETALING JAYA : A man was found dead in his car in Kuching, Sarawak, this morning, with police saying he died from a gunshot to the head. Padawan police chief Irwan Hafiz Radzi said police were informed of the matter by two men at the Batu Kawa police station at 5.30am, Harian Metro reported. He said the men claimed they found their friend slumped in the car, and believed he had been shot while driving. 'The two men brought their friend to the station, where the Padawan investigative team and medical officers confirmed the 34-year-old was dead,' he was quoted as saying. Irwan said the case is being investigated under Section 302 of the Penal Code for murder.

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