Indonesia's Palm Duty Drop Will Hurt Malaysia's Exports

Published Sep 23, 2024

Tridge summary

Indonesia's decision to reduce palm oil export duty could negatively impact Malaysian palm oil exports, according to Public Investment Bank analyst Chong Ho Leong. The duty cut is expected to decrease the price differential for crude palm oil between the two countries, potentially leading to Malaysian exporters losing market share and increased competition for Malaysian palm oil processors. Despite this, Public Investment Bank keeps a neutral outlook for Malaysia’s plantation sector, predicting that crude palm oil price will reach 3,800 ringgit ($903.15) per tonne in 2024. Malaysian palm oil futures have seen a third consecutive session of rise, increasing about 3.1% for the week.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Indonesia’s cut in palm oil export duty could put pressure on Malaysian palm oil exports, says Public Investment Bank analyst Chong Ho Leong. He says the cut will narrow the price differential for crude palm oil between Indonesia and Malaysia from 290 ringgit to 181 ringgit ($68.92 to $43.02) per tonne, potentially costing Malaysian exporters some of their market share. This will increase competition and make matters more difficult for Malaysian palm oil processors, who are already struggling. Despite this, Public Investment Bank maintains a neutral outlook for Malaysia’s plantation sector, expecting the crude palm oil price to reach 3,800 ringgit ($903.15) per tonne in 2024. The December ...

Source: Rosng