Kuala Lumpur: AmInvestment Bank Bhd has maintained its neutral rating on the plantation sector amid the recent ‘standard risk’ classification by the European Commission (EC). The classification dictates the level of documentation and compliance necessary to implement the European Union Deforestation Regulation (EUDR), set to commence on December 30, 2025.

According to BERNAMA News Agency, AmInvestment Bank noted that while the Malaysian Palm Oil Council (MPOC) is contesting the EU’s benchmarking methodology, the impact on major Malaysian palm exporters is anticipated to be minimal. These exporters are reportedly prepared for the EUDR, having already sent trial shipments of EUDR-compliant palm products.

The investment bank further stated that the next benchmarking review is scheduled for 2026, allowing Malaysia to provide updated data to the EU for consideration in the upcoming evaluation.