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Minister of Plantation Industries and Commodities Zuraida Kamaruddin is optimistic Malaysia can achieve its target of RM300 billion in annual palm oil exports by the end of the year. – The Malaysian Insight file pic, July 24, 2022.

DEMAND for Malaysia’s palm oil will continue to rise globally despite Indonesia’s decision to waive its palm oil export levy to cut bloated stockpiles, said Minister of Plantation Industries and Commodities Zuraida Kamaruddin.

She said market jitters, if there were, would only be temporary.

“Whatever it is, the world needs palm oil. The only thing is that, of course, our palm oil price will be more expensive than that of Indonesia because they have a sufficient labour force and enough access. Hence, the production is cheaper.

“However, this situation is just temporary so I’m not too worried about that,” she told Bernama.

After announcing a three-week export ban, the Indonesian government has decided to scrap the export levy, effective July 15 to August 31, 2022, for palm oil and palm oil products.

The Indonesian government said that this was its attempt to boost exports and ease high inventories.

Recently, Zuraida had said that the ministry remained optimistic that China would be increasing its palm oil imports.

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Deputy minister Wee Jeck Seng had also said that the ministry would monitor the development of the palm oil industry.

“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 exports,” he said.

Meanwhile, Zuraida expressed optimism about securing RM300 billion worth of exports from the commodities sector this year.

She said the ministry is keeping its target intact ahead of the three-day Malaysia International Agri-commodity Expo and Summit (MIACES) on Tuesday.

Zuraida said the target was an increase of an additional RM100 billion compared to a total export value of RM204 billion last year and RM84 billion in 2020.

“The target is achievable and MIACES will help to contribute towards the total RM300 billion export value for 2022,” she said.

The minister added that the summit would be a better platform to showcase the achievements and the ongoings of the industry despite the pressure from the United States and the European Union on forced labour allegations. – Bernama, July 24, 2022.


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