Malaysia is facing sanction from India and in certain way from China as well. The ban on palm oil from Europe (from unconfirmed source) is because of refined palm oil has certain chemical added to prolong the life shelf but that additive to them is cancer causing agent.

It might have nothing to do with chopping down forest and jungle though it has been said this is the reason behind the ban. Malaysia PM has to be tactful in dealing with foreign PM to prevent repeat of India's "palm oil stop buying from Malaysia" incidence.

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