BAGAN DATUK: The government will review trade with the European Union (EU) over the latter’s proposal to remove palm oil from its biofuels mix after 2020, said the deputy prime minister yesterday.
Datuk Seri Dr Ahmad Zahid Hamidi said the move by the EU would affect the income of 500,000 oil palm farmers in the country.
“During last week’s cabinet meeting, chaired by Prime Minister Datuk Seri Najib Razak, the government decided that it would review the purchase of products from countries that banned palm oil.
“They have carried out marketing strategies so that we buy their products, but they do not want to buy ours.
“Malaysia is not a country that can be belittled,” he said at the launch of the Hello Commodity Bagan Datuk programme at Dewan Datuk Mohamed Jamrah here.
Present were Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong and Rungkup assemblyman Datuk Shahrul Zaman Yahya, who is also state human resources committee chairman.
Zahid said between January and November last year, commodity-based exports stood at RM129.1 billion, or 15.1 per cent of the country’s export income.
Of the total, he said, 55.4 per cent or RM71.5 billion was contributed by the palm oil sector.
He said the ban, a discriminatory act, would affect the demand for palm oil.
“The commodity sector is the backbone as it not only increases the country’s revenue but is also one of the people’s economic activities.
“As such, the government will take steps to guarantee the future of the country’s palm oil sector.”
Zahid was commenting on the resolution by the EU Parliament on Jan 17, through the Renewable Energy Directive, that requires only sustainably-produced palm oil to be imported into the EU market after 2020.