Malaysia

Forest context

Malaysia’s natural landscapes include extensive tropical rainforests, peatlands and mangrove systems that support biodiversity, watershed functions, carbon storage, and rural livelihoods. Forest and land-use dynamics are influenced by commercial forestry, plantations and agricultural commodities, notably palm oil, rubber and timber. Logging and palm oil production have historically been major drivers of deforestation in Malaysia; however, deforestation rates have declined significantly in recent years thanks to initiatives focusing on sustainable production. Balancing development with environmental protection, Malaysia has integrated forest and biodiversity conservation into national policy frameworks, and incentivises states to preserve and restore forests.

Our approach

EFI supports Malaysia in strengthening deforestation-free commodity value chains and ensuring smallholder inclusion, with a focus on the palm oil and rubber sectors. We provide technical support to certification and other systems for collecting geospatial and legality data for monitoring, risk assessment, and due diligence. Our work contributes to enhanced traceability, smallholder participation and inclusion in international markets, and overall readiness for evolving global market requirements.

EFI collaborates with government agencies, industry associations, smallholders, civil society, and the private sector to pilot smallholder inclusion strategies, support enhancements to certification and traceability systems, and boost transparent, traceable supply chains. By facilitating technical assistance, multi-stakeholder dialogue, and capacity building, EFI contributes to responsible commodity production pathways in Malaysia.