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Last Updated: 08 June 2023

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SPEECH 2:
WORKING LUNCH WITH EU CEOs OF PALM OIL INDUSTRIES REPRESENTATIVES

SALUTATION

• E. Airlangga Hartarto, Coordinating Minister for Economic Affairs, the Republic of Indonesia

• YB Datuk Haji Len Talif Salleh, Deputy Minister Urban Planning, Land Administration and Environment, Sarawak, Malaysia

• Dato’ Haji Mad Zaidi Bin Mohd Karli, Secretary General, Ministry of Plantation and Commodities, Malaysia

• Dr. Musdhalifah Machmud, Deputy Minister for Food and Agribusiness, Coordinating Ministry for Economic Affairs, the Republic of Indonesia

• E. Dato’ Ahmad Rozian Abd. Ghani, Ambassador of Malaysia to Belgium, Luxembourg, and the European Union

• E Dr. Andri Hadi, Ambassador of the Republic of Indonesia to the Kingdom of Belgium

• E. Arif Havas Oegroseno, Ambassador of the Republic of Indonesia to the Federal Republic of Germany.

• HE Mr. Ambassador Muhsin Syihab, Senior Advisor to the Minister on Inter-institutional Relations/Acting Senior Advisor to the Minister on Economic Diplomacy, Ministry of Foreign Affairs of the Republic of Indonesia

• Eddy Abdurrachman Usman, President Director, Palm Oil Plantation Fund Management Agency (BPDPKS)
• Mohamad Helmy Othman Basha, Chairman of Malaysian Palm Oil Board

• Dato’ Carl Bek-Nielsen, Chairman of Malaysian Palm Oil Council

• Viviane de Pierrefeu, Chargée d'Affaires a.i., Embassy of Honduras in Brussels

• Dr Rizal Affandi Lukman, Secretary General, CPOPC

• Datuk Nageeb Wahab, Deputy Secretary General, CPOPC

1. I would like to welcome the attendees, thank you for taking your time off and spending lunch hour here. Your presence and support reflects the strong commitment towards a sustainable and responsible business practices / sustainability journey of the palm oil industry.

2. The EU has always been an important market for palm oil. In 2022, the EU imports 1.47 million tonnes of palm oil. The EU is also at the forefront in championing the sustainable palm oil agenda. According to a September 2022 report titled “Sustainable Palm Oil: Europe’s Business”, the EU is by far the largest consumer of CSPO and accounts for 45% of total global CSPO use. This also places Europe as an important partner in stimulating the demand for sustainable palm oil in other nations.

3. However, there are growing concerns in the EU on the sustainability of agriculture commodities and their impact on climate change, environment, and biodiversity. This is reflected in recent developments, where a number of impending sustainability-related legislations undermines all the sustainability achievements and progress in the palm oil industry.

4. Under the EU Renewable Energy Directive III (EU RED III), palm oil is still singled out as the only biofuel feedstock, according to the EU regulators, as having a high indirect land-use change (ILUC) risk, and therefore it will be phased-out for the purpose of being counted towards the EU’s renewable energy target by 2030.

5. In addition, the proposed Corporate Sustainability Due Diligence Directive, as well as the Regulation Prohibiting Products Made with Forced Labour are also potential trade barriers and burden to operators along the supply chain, especially smallholders.

6. Similarly, the proposed Green Claims Directive compelling companies to provide scientific evidence for their green labels. This regulation on generic and unsubstantiated environmental claims could be an important ground to challenge ‘palm oil-free’ and ‘no palm oil’ claims made on products placed on the EU market and that imply that the ingredient used as a replacement to palm oil has less of a negative impact on the environment.

7. These above-mentioned proposed legislations are often unilateral actions by the EU without taking into consideration the challenges and constraints of the producing countries, which are mostly developing countries, in meeting the requirements.

8. The EU stakeholders should acknowledge the limitations by producing countries, continuously provide support in meeting the requirements as well as working together towards providing feasible solutions for a win-win situation.

9. In my capacity as the Deputy Prime Minister and the Minister of Plantation & Commodities, I will take serious attention to the issues raised and discussed by the stakeholders throughout my visit. I am also keen to hear suggestions and solutions that could elevate the palm oil industry to greater heights. As a responsible producer and exporter of palm oil, we are committed to working with our international partners especially here in the EU, to foster a positive image of the industry and promote its benefits for all.

10. We reiterate that Malaysian palm oil is sustainable. The Malaysian Sustainable Palm Oil (MSPO) already guarantees Malaysia’s commitment to sustainability, and continues to provide sustainable and deforestation-free palm oil to our European and global customers.

11. MSPO is constantly evolving and improving. Major revisions in 2022 introduced more stringent standards, including:

• A cut-off date of 31 December 2019 for deforestation which meets the EUDR’s cut-off date
• Identification of greenhouse gas emissions and monitoring plans for GHG reduction
• Introduction of new guidance on free, prior and informed consent (FPIC)
• Safeguarding of human rights defenders and whistleblowers

12. The Malaysian government is also committed to the key policies relating to sustainable palm oil, these include:

• Stopping planting on peatland areas and strengthening regulations on existing oil palm cultivation on peat land,
• Banning the conversion of forest reserve areas for oil palm cultivation, and
• Pledging to make oil palm plantation maps available for public access.

13. At the COP 26 in Glasgow, Malaysia announced a target to achieve net zero earliest by 2050. Malaysia also keeps its promise to maintain at least 50% forest cover as pledged during the Rio Earth Summit 1992. Currently, Malaysia’s forest cover is at 55.3%.

14. The palm oil industry has demonstrated commitment to climate action. According to Forest 500 analysis by Global Canopy, 72% of palm oil companies have made a deforestation commitment, which is significantly higher as compared to other commodities such as pulp and paper (49%), soy (40%), beef (30%) and leather (28%).

15. However, we need the full support of all parties throughout the palm oil supply chain in order to realise our shared goals of striking a sustainable balance between the environment and socio-economic needs, as well as upholding the highest standards of sustainability and responsible practices.

16. Together, we can ensure that palm oil remains the commodity of choice in the promotion of sustainable production and consumption. We have definitely come a long way and we are committed to continuing this journey with you.

17. Thank you.

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Last Updated: 08 June 2023

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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.

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Last Updated: 23 March 2023

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SPEECH BY
YAB DATO’ SRI HAJI FADILLAH BIN HAJI YUSOF
DEPUTY PRIME MINISTER AND
MINISTER OF PLANTATION AND COMMODITIES
GERMINATED SEED SENDING OFF CEREMONY TO HONDURAS
20TH MARCH 2023
ONLINE

OPENING REMARKS

Ladies and gentlemen, friends and colleagues,

Salam Sejahtera and a very good morning to all of you.

1) It is a great pleasure to be here this morning to witness the shipment ceremony for the oil palm seed donation to Honduras. As you may know, many Honduran smallholders were affected by the 2020 hurricane that caused much damage and losses to thecommunity. The Council of Palm Oil Producing Countries (CPOPC) has therefore agreed to donate oil palm germinated
seeds (GS) to Honduras to support the smallholders.

2) I am pleased that the Ministry of Plantation and Commodities, Malaysia as a member of CPOPC, is also contributing to this initiative in helping the local farmers there. Being a part of the
global palm oil industry, we fully understand the importance of smallholders in the economic growth and social resilience of a country. In Malaysia, the palm oil industry remains a flagship sector of the country’s economic development, with a significant contribution to the national Gross Domestic Product. Over the years, this industry has also generated hundreds of thousands of employment opportunities and uplifted the livelihoods of many in Malaysia, especially the smallholders. It is indeed a very important sector for the nation. Hence, drawing from our own experience, I believe the initiative today is the right step towards nation building and prosperity creation for Honduras in the long run, and I am delighted to see the support we receive today.

Ladies and gentlemen,

3) I believe that today’s ceremony is not just about the oil palm seed donation, but it also signifies close cooperation among palm oil producing countries globally. CPOPC has proven its important role in the development of palm oil sectors at the international level. This also proves that we recognize Honduras as an important ally of CPOPC, more so since the country is in the process of becoming a full member of the Council. It is only right for us to extend the help that they need with the germinated seeds, and I hope this will foster stronger ties between the member countries moving forward.

4) I would also like to acknowledge and congratulate our partners who have made this donation possible, including the government of Indonesia, the companies that have participated in this effort, and government authorities that have supported us. All the assistance and support given are a testament to what we can achieve when we come together with a shared vision and commitment to make a difference.

5) Finally, I wish Honduras a successful program, especially in the following process of distributing the donated seeds to the nurseries and plantations and the replanting process later.

6) Let me conclude my remarks by reaffirming our commitment to support Honduras in any way possible, and I hope this donation will go a long way in improving the lives of the farmers and their families there.

Thank you.

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Last Updated: 15 March 2023

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OPENING CEREMONY SPEECH BY

YAB DATO’ SRI HAJI FADILLAH BIN HAJI YUSOF
MINISTER OF PLANTATION AND COMMODITIES

INTERNATIONAL CONFERENCE ON TIMBER
CERTIFICATION
“EXPLORING FUTURE FRONTIERS”

15 March 2023 (Wednesday)
9.00 am
Sunway Putra Hotel, Kuala Lumpur

Bismillahirrahmanirrahim

Assalamualaikum Warahmatullahi Wabarakatuh,

Salam Sejahtera and a Very Good Morning.

SALUTATION

Yang Berbahagia Datuk Zurinah Pawanteh
Secretary General, Ministry of Plantation and Commodities

Yang Berusaha Puan Hajah Roslina Idris
Deputy Director General, Malaysia Timber Industry Board

Yang Berusaha Puan Noraihan Abdul Rahman
Chief Executive Officer, Malaysia Timber Council

Yang Berusaha Puan Sabrina Mawasi
Deputy Chief Executive Officer, Malaysian Timber Certification Council

Yang Berbahagia Professor Dato’ Dr. Mohd. Ekhwan Hj Toriman
Vice Chancellor, Universiti Kebangsaan Malaysia

Yang Berusaha Prof. Madya Dr. Goh Choo Ta
Director, Institut Alam Sekitar dan Pembangunan (LESTARI)
Universiti Kebangsaan Malaysia

Member of the board of trustees of MTCC

Distinguished Guest

Members of media

And all participants of International Conference Timber Certification

1. Let me begin my speech by wishing “Selamat Datang” to all participants, especially our visitors from abroad. We are delighted to welcome you to Kuala Lumpur, our magnificent
garden city of lights and the capital of Malaysia.

2. It is indeed a great pleasure and privilege for me to address this distinguished gathering of the diverse groups involved in a broad spectrum of activities related to the sustainable management of forests and its resources – biodiversity and ecosystem services, as well as the timber industry.

3. I would like to thank the main organiser, the Malaysian Timber Certification Council (MTCC) and also the coorganisers, the Malaysian Timber Industry Board (MTIB) and the Malaysian Timber Council (MTC), in collaboration with the Institute for Environment and Development (LESTARI), Universiti Kebangsaan Malaysia for inviting me to officiate the International Conference on Timber Certification: Exploring Future Frontiers.

Ladies and Gentlemen,

4. Malaysia’s efforts towards conservation and sustainable forest management began as early as the beginning of the 20th century with continuous efforts in ensuring sufficient forest areas are gazetted as forest reserves. I am proud that Malaysia has managed to honour the pledge made during the 1992 Earth Summit to maintain at least 50% of our land area under forest cover.

5. Malaysia is serious in ensuring that forest areas are managed sustainably. In this regard, several initiatives have been undertaken to manage permanent reserved forests not only for timber production but also to ensure forest ecosystem services such as water catchment areas, biodiversity conservation, recreational facilities and carbon stock. Despite difficulties during the COVID-19 pandemic, the timber sector has rebounded and contributed RM 25.21 billion in export value in 2022.

6. To further enhance efforts toward sustainable forest management, the MTCC was established in 1999 to develop and operate a voluntary national timber certification scheme in Malaysia, which is the Malaysian Timber Certification Scheme (MTCS).

7. In this regard, MTCS had been recognised and endorsed by the world’s largest forest certification scheme, the Programme for the Endorsement of Forest Certification (PEFC) since 2009. The recognition and endorsement have strengthened the credibility of MTCS in meeting international requirements and standards. In the context of global development, MTCS has contributed to sustainable forest management of tropical forests and has placed Malaysia at the forefront of tropical forestry through timber certification.

Ladies and Gentleman,

8. As of 31st December 2022, there are a total of 5.81 million hectares of forest, (equivalent to 31% of the permanent reserved forests in Malaysia), which have been certified under the MTCS. The total certified areas consist of 37 forest management units of natural and plantation forests.

9. As for the Chain of Custody (CoC), up to 31st December 2022, there are 362 companies issued with PEFC Chain of Custody certificates. It is encouraging to note that the scope in the certified product category has expanded from primary processed sawn timber and veneer to a broader range of products such as plywood, mouldings, parquet, woodchips, wood pellets, doors, wooden furniture as well as nontraditional forest products such as mosquito coil, baby diapers and egg trays.

10. The performance of MTCS certified timber products export shows progressive growth. The initial export volume was merely 732 m3 in 2002 and cumulatively has increased to 2.97 million m3 as of December 2022 and has been exported to 72 countries. Overall, the export of MTCS certified timber products has been encouraging and I am pleased to note that MTCS certified timber products are readily accepted by many countries.

11. I must acknowledge the tremendous efforts and initiatives of the various state governments in the Peninsular, and the region of Sabah and Sarawak, which have shown outstanding commitment to ensure the implementation of Sustainable Forest Management (SFM) through timber certification.

Distinguished guests, Ladies and Gentlemen,

12. I am happy to note that MTCC has undertaken a research collaboration with LESTARI, UKM, funded by MTIB, to study “The Impact of MTCS on forest Management, Industry and Trade” since its implementation within the last two decades. I was informed that there has been amazing progress and positive outcomes on the impact of certification to catalyse improvements in forest management practices and the downstream processes in the timber industry.

13. Globally, Malaysia is positioned as one of the top ten in certified forest areas and is leading among tropical countries. Based on its track record over the past 20 years, especially after its endorsement by PEFC, the MTCS is now recognised as one of the leading timber certification schemes for tropical forests.

14. The implementation of MTCS fully supports the Government’s vision and policy for sustainability such as the Malaysia Policy on Forestry 2020, the National AgriCommodity Policy 2030 (DAKN2030) and the National Policy on Biological Diversity 2016-2025, amongst others.

15. At the same time, the Governments of Sabah and Sarawak have also announced their commitments in ensuring the implementation of SFM by mandating all forest concession holders obtain certification. I am pleased to note that there has been continuous improvement in rules, procedures and guidelines to provide for better compliance in accordance with the certification standards.

16. The requirement for reduced impact logging has also spurred innovative practices such as the use of “Logfisher” to minimise the impact of timber harvesting on the forest environment as well as the digitalisation of timber tracking systems, such as REVLOG implemented by the Forest Department of Sarawak for more efficient tracking.

Ladies and gentlemen,

17. The concept of sustainable forest management has evolved from ensuring a sustained supply of raw material to also covering the protection of biodiversity and ecosystem services. In this regard, certification requirement has also spurred positive developments in forest conservation and preservation of sensitive ecosystems and wildlife habitats, particularly in the establishment of High Conservation Value Area (HCVA) in various Forest Management Units (FMUs) focusing on the conservation of rare, endangered and threatened species as well as conserving and promoting local community needs and it's cultural values.

Ladies and Gentlemen,

18. The progress and impact of timber certification have been commendable but yet many more challenges need to be addressed. As we see increasing demand for environmental and social governance amidst the global pressure to adaptto a changing climate and the scour for more environmentally friendly natural resources, forest and timber certification plays a much bigger role to keep the balance between economic development and ecological integrity.

19. With a wide range of topics to be discussed in this conference with local and international speakers, I sincerely hope that all participants could explore new opportunities by expanding future markets for certified timber products and enhancing the image of Malaysia’s timber industry at the global level. With active participation, I’m sure this conference will provide greater collaboration among all Malaysian and international timber industry players.

20. On that optimistic note, I wish all delegates and participants a fruitful and productive time throughout the conference. And with great pleasure I now officially open the Inaugural International Conference of Timber Certification: Exploring Future Frontiers

Thank you.

Wassalamualaikum Warahmatullahi Wabarakatuh.

MINISTRY OF PLANTATION AND COMMODITIES
15 MARCH 2023