Wednesday, June 26, 2024
26 C
Brunei Town

Malaysia still reviewing proposed cut in palm oil export tax

CNA – Malaysia is still reviewing the viability of a temporary cut of a crude palm oil export tax, the Commodities Ministry said yesterday, after Indonesia lifted an export ban that has rattled the market.

Malaysia, the world’s second-largest palm oil producer, is looking to boost its share of the edible oil market after Russia’s invasion of Ukraine disrupted sunflower oil shipments and Indonesia’s ban on palm oil exports further tightened global supplies.

Top producer Indonesia said it would lift the ban from Monday, and instead impose a domestic market sales requirement in a bid to ensure domestic supply of cooking oil.

Minister Zuraida Kamaruddin told the media in an interview last week her ministry had proposed lowering the tax to four to six-per-cent from the current eight per cent to the Finance Ministry, which has set up a committee to look into the details.

Yesterday, Zuraida in a statement said discussions with the Finance Ministry were still ongoing.

“This proposed temporary cut is pending a decision and we believe that Malaysian exporters are likely to be clear winners in the short term as global buyers will source for Malaysian palm oil,” she said.

The ministry will continue to monitor the current situation involving Indonesia’s policy changes, she added. Zuraida said looking ahead, crude palm oil prices are likely to fall due to a pending rise in production but prices will stay elevated until mid-2023 on tight global supply and uptake from China.