SPEECH BY
YAB DATO ’SRI HAJI FADILLAH BIN HAJI YUSOF
DEPUTY PRIME MINISTER AND MINISTER OF PLANTATION AND COMMODITIES
IN CONJUNCTION OF
LUNCH WITH MALAYSIAN DIASPORA, SOFITEL HOTEL, 29th MAY 2023
SALUTATION
(note: The salutation list will be updated based on latest info)
….And the rest of our Malaysian Diaposra here in Brussels.
Assalamualaikum, Salam Sejahtera, Salam Malaysia Madani and good evening everyone.
1. First of all, I would like to thank our Perwakilan here in Brussels for arranging this gathering and, of course, to all of you for sparing your precious time to attend and engage with us this evening. As most of you might have known, I am here in Brussels for the Malaysia-Indonesia Joint Mission to the EU, hosted by the Council of Palm Oil Producing Countries (CPOPC).
2. I do not think my trip will be complete without meeting and connecting with all of you. Indeed, this is an opportune time to be in touch with our brothers and sisters in Brussels and share some insights that might be of your interest.
3. Ever since I was first entrusted with the portfolio of the Deputy Prime Minister and Minister of Plantation and Commodities, I realised the bigger and more profound role that the Ministry had to play to steer the agricommodity sector to bolster the country's economic growth in the current challenging era. The agricommodity sector has not only become the poverty elevation tool but also plays a significant contribution in reviving our economy back on track post-COVID19 pandemic.
4. I firmly believe that this Ministry is essential in spearheading the agricommodity trade and ensuring the sector is well-governed, particularly in protecting the livelihood of more than 700,000 smallholders with our initiatives and efforts. At the same time, during these challenging times, providing job and business opportunities along the supply chain.
5. I believe maybe some of you here are working or perhaps studying in areas of specialisation that might be related to agricultural commodities. I will not bore you with statistics on how well our sector has performed over these few years and the endless struggle that we have to face in making sure that we are always ahead of our competitors and put up bold resistance movement to protect some of our agricommodities, be it in the name of sustainability, climate change, forced labour or health risks.
6. To me, the truth is that our Government remained steadfast in our efforts to mitigate these challenges and fight these baseless allegations. It is with this mandate my Ministry decided to show the world Malaysia's strong positions, commitment and initiatives towards a sustainable agricommodity sector.
Ladies and Gentlemen,
7. As you all know, the EU Council and Parliament have reached a provisional deal on a proposal to minimise the risk of deforestation and forest degradation associated with products imported into or exported from the European Union through the European Union Deforestation Regulation (EUDR). Sustainability has become the key issue emphasised in these regulations, where producing countries need to meet specific traceability regulations that burden Malaysia's smallholders.
8. As a producing and trading country, Malaysia is deeply concerned over the implementation of the EUDR and its implications to our main commodities, including palm oil, timber, cocoa, and rubber. This unilateral initiative is detrimental to free and fair trade and could adversely impact the global supply chain.
9. Some aspects of the risk-assessment process of the Regulation are counterproductive to commitments to curb global deforestation and run the risk of disincentivising producing countries. The implementation of the Regulation is based on unsound reasoning and has a weak scientific basis. It places additional burdens on Malaysian palm oil exporters to the EU market, specifically on the additional traceability requirements and data that must be provided to end customers based in the EU.
10. Malaysia values the EU as one of our important trading and investment partners. However, from our perspective, the implementation of EUDR is a deliberate act by Europe to block market access and protect their domestic oilseeds market, which is inefficient and cannot compete with the cost of palm oil. Moreover, it could lead to higher food prices and reduced output at a time of record global inflation.
11. Therefore, my presence with the Malaysian delegations here in Brussels is to emphasise our strong position against the implementation of the European Union Deforestation Regulation (EUDR) and any discriminatory trade practices against our agricommodity sector.
Ladies and Gentlemen,
12. I wish to point out that the concept of sustainability under the United Nation Sustainable Development Goals (UNSDGs) extends beyond just the sole idea of forests. In fact, the UN's definition of sustainability is extremely clear, that social and economic sustainability is on an equal plane with environmental. In most definitions of sustainability, we also find concerns for social equity and economic development.
13. In this context, Malaysia underscores the need for a balanced approach between achieving development goals and climate ambition. The UNSDGs remain the utmost priority for Malaysia. We have embarked on sustainability initiatives, including national certification schemes, such as the Malaysian Sustainable Palm Oil (MSPO) certification scheme, Malaysian Timber Certification Scheme (MTCS) and Sustainable Forest Management (SFM) practices, with a view to facilitating access into the EU Single Market.
14. Our mission to the EU aims to shed some light on how the idea of sustainability are defined within the context of agricommodities and how we integrate the objectives of the UNSDGs into our plantation policies, development and management.
15. The debates within the EU over palm oil and biofuel sustainability issues are the reflections of a lack of knowledge and deep understanding about the topic and the rising concern that it is driven by an overly political agenda. I want to reiterate that come what may, Malaysia will continue the battle to promote the positive image of Malaysian agricommodity products and prove what we can do best in adhering to sustainable production and consumption.
16. For instance, The Malaysian Sustainable Palm Oil (MSPO) standard already guarantees Malaysia's commitment to comprehensive sustainability standards. These standards show Malaysia's strong commitment and efforts to provide sustainable and deforestation-free palm oil to our European and global customers. Therefore, there is no need to add further costs and burdens to the industry, particularly to the smallholders, which will negatively impact their welfare and livelihood. Ladies and Gentlemen,
17. To stand out in the fight, we need more than words. It is also my sincere hope that our dear Malaysian diaspora here in Brussel and all over the world could be our ambassadors to promote and share the right information about our agricommodities products.
18. We need you to continuously share and promote the health benefits of our sustainable palm oil, which is an excellent source of tocotrienols, a form of vitamin E with strong antioxidants in keeping your immune system healthy, good for brain health, and helps reduce the risk of heart disease.
19. We need you to spread the word on the achievements made by many of our local cocoa beans champions, who have won awards internationally over the years for its quality and taste, and we need you to convey the authenticity of our renowned Sarawak Pepper which has been awarded with a Geographical Indication (GI) status for its specific geographical origin with detailed information of the pepper qualities.
20. In short, the world is looking at us. We all must stand tall, fly high and be proud of our very own Malaysian agricommodities and products. Going forward, all of us have to work hand in glove strategically. As such, I would encourage each and every one of you to actively promote our treasures here in the land of Brussels or across the globe.
21. Thank you.