Malaysia all set to promote palm oil industry

KUALA LUMPUR: Malaysia, which is considered as the world's second largest palm oil producer, has decided to take initiatives to boost the palm oil industry and also make it competitive against its competitor Indonesia.

Indonesia, which is the world's largest palm oil producer, has maintained the export duty on crude palm oil at 19.5%, which is lower than Malaysia's export duty of 30%.

Malaysia Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said, “I am preparing a submission to the Cabinet to see how the tax structure promulgated by Indonesia can affect the industry in Malaysia.”

Dompok also stated that he has got various complaints from trade bodies on the effect of export duty cut in Indonesia on Malaysia's trade.

The palm oil industry has been seeking cut in export duty in Malaysia with the aim to make palm oil competitive as compared to Indonesia.

Malaysia is expected to attain the aim of nearly 19.3 million tonnes this year despite the poor production during the first quarter.