Photo by : Muhammad Ridho Hardiansyah / Sawitfest 2021
Palmoilmagazine, KUALA LUMPUR – The Government of Malaysia still re-studied temporary export cut of crude palm oil, Friday (20/5/2022), President Joko Widodo officially revoked CPO export ban from Indonesia which once shocked the world.
As the second biggest CPO producer in the world, Malaysia is figuring out to increase CPO trade after Russia invaded Ukraine that stopped sunflower oil distribution and CPO export ban from Indonesia which decreased its supply in the globe.
Prior Minister of Plantation Industry and Commodity Malaysia, Zuraida Kamaruddin mentioned that the government decreased tax export to be 4% - 6% from the previous, 8% to Ministry of Finance, Malaysia, and made committee to get the details.
“The export tax cut is waiting for the decision and we believe that Malaysia’s exporters would be the winner in this very short because the buyers whole over the world would get their CPO supply from Malaysia,” Zuraida said, as quoted from Reuters.
Ministry of Plantation Industry and Commodity Malaysia would keep monitoring the market situation because of the changing policy in Indonesia.
Zuraida also mentioned that in the future CPO price would be cheaper. But for the postponed production, it would be remaining expensive by the midst of 2023 because of the tight supply in the globe, increasing demands namely from China.
Its main importer country, China is ready to increase CPO demands in the late of this year for the country re-opens the economic activity during Covid-19 pandemic. (T2)