KUALA LUMPUR, Feb 17 — Prime Minister Datuk Seri Anwar Ibrahim hopes the European Union (EU) will not be too rigid with its regulations imposed on Malaysian export commodities, especially palm oil products.

As the second largest palm oil producer in the world, Anwar said that Malaysia is deeply concerned over the EU Deforestation-Free Products Regulation (EUDR) implementation.

He said that Malaysia is keen to export more sustainable palm oil to Germany and hopes that palm oil will be the new top commodity export to Germany.

"So EUDR should be reviewed together (with Germany) so that any attempt to protect the environment and focus on renewable energy would not be at the expense of our economy,” he said in a joint press conference with German President Frank-Walter Steinmeier.

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He said that the regulation did not only affect palm oil products, but also others like timber, cocoa, and rubber.

Anwar also said that Malaysia had encountered serious difficulty with the negotiations held with the EU in regard to palm oil following the conditionalities imposed.

"We have taken all necessary measures such as reforestation, protect the environment, and ensure no intrusion to pit soil area, so I think they should allow us to function as a vibrant economy and not so rigid, that was my appeal.

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"We are as concerned and committed to the climate change and for us, it is through some understanding and negotiations to give and take, not for one region to imposed such condition which we think impairs the progress and development of our economy,” he said.