Indonesia's export levy decision will not impact demand for Malaysia’s crude palm oil (CPO)

Published 2022년 9월 23일

Tridge summary

Despite Indonesia's decision to extend its export levy waiver for crude palm oil (CPO), demand for Malaysia's CPO is expected to remain stable, according to Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin. This is due to high global demand for the commodity and a current shortage in the market. The ministry is also working to increase the number of cocoa farms in Malaysia, as cocoa has high potential and demand. The majority of these farms are located in Sabah, Sarawak, and Johor.

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Original content

PETALING JAYA (Sept 23): Demand for Malaysia’s crude palm oil (CPO) is expected to remain stable, despite the Indonesian government's recent decision to extend its export levy waiver for the commodity. Given that there is high demand for CPO right now, Indonesia’s move is not expected to have an impact on the market for the local commodity, said Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin. “There is nothing to be concerned about at this time. Demand for our CPO will not be affected. The [global] market is still short of palm oil," she told the media after a working visit to the Chocolate Museum here on Friday (Sept 23). She was commenting on a news report on Wednesday, which stated that Malaysia’s CPO exports are expected to fall in the next two to three months, raising the inventory level by the end of December 2022 to 2.5 million metric tons, the highest since April 2019. The projection was based on Indonesia’s move to reduce its CPO stocks at cheaper ...

Source: Theedgemarkets