KUALA LUMPUR (July 19): The government will monitor the development of the palm oil industry after Indonesia announced that it had scrapped its export levy for all palm oil products until Aug 31, 2022.
Deputy Plantation Industries and Commodities Minister Datuk Seri Dr Wee Jeck Seng said the development would affect Malaysia, which is one of the largest producers of palm oil products.
“We will look at this matter seriously because it does affect the export [of Malaysia’s palm oil],” he told reporters after a working visit to Isella Sofa Design Sdn Bhd here on Tuesday (July 19).
Indonesia’s decision, which is also a major exporter of palm oil, to repeal the export levy for palm oil products is a fresh attempt to boost exports and ease high inventories, the country’s Finance Ministry officials said on July 15.
Indonesian palm oil producers have struggled with high inventories since the country imposed a three-week export ban, through May 23, 2022, to reduce domestic cooking oil prices.
Source: The Edge Market
