KUALA LUMPUR, March 6 (Reuters) - Malaysia said on Wednesday it will closely monitor changes to the European Union (EU)'s regulations, after the World Trade Organisation ruled this week in favour of an EU decision that biodiesel made from palm oil should cease to count as a renewable biofuel.

The government will also pursue compliance proceedings if necessary, Malaysia Plantations and Commodities Minister Johari Abdul Ghani said in a statement.

(Reporting by Rozanna Latiff; Editing by Kanupriya Kapoor)