KUALA LUMPUR, June 6 — AmInvestment Bank Bhd has maintained its neutral rating on the plantation sector amid the recent “standard risk” classification by the European Commission.
The risk classification determines the amount of documentation and compliance required to facilitate the implementation of the European Union Deforestation Regulation (EUDR), which will take place on December 30.
The investment bank said in a note that although the Malaysian Palm Oil Council is challenging the EU’s benchmarking methodology, the impact on large Malaysian palm exporters is not expected to be significant.
“They are prepared for the EUDR and have been sending trial shipments of EUDR-compliant palm products.
“The next benchmarking review will take place in the 2026 forecast. Malaysia can submit updated data to the EU for the next review,” it said.
— Bernama
