EU’s resolution affects 650,000 palm oil smallholders in Malaysia

smallholders-in-MalaysiaThe European Union’s decision to ban the import of palm oil from Malaysia is seen as threatening the future of 650,000 smallholders in the industry apart from its negative impact to the country’s economy.

Malaysian Palm Oil Board chairman Datuk Seri Ahmad Hamzah said this was because Malaysia is the largest exporter of the commodity in the world and EU is the second largest export market of the country which contributes the highest export revenue.

“The resolution will give a major impact to Malaysia not only to its economy and threaten the livelihood of oil palm growers who depended on the export revenue.

“The proposal has indirectly affected the credibility of the country as the largest producer of palm oil in the world,”he said.