KARACHI: Malaysia, the second-biggest palm oil producer, may announce a plan “in the near future” to compete with top supplier Indonesia which reformed its export taxes to boost its refining industry, the Malaysia Palm Oil Board said.
“As we speak they are discussing in Kuala Lumpur, what’s the next plan of action,” Ahmad Kushairi Din, the Deputy Director-General for Research and Development, said in an interview in Karachi, Pakistan.
In October, Indonesia cut maximum export duties on refined, bleached and deodorized palm oil to 10% from 23%. The rate for RBD palm olein was cut to 13% from 25%, while the highest tax for crude palm-oil exports was set at 22.5%.
The move widened the tax gap between processed products and crude palm oil, giving Indonesian refiners a feedstock-cost advantage over Malaysia, Ivy Ng, an analyst with CIMB Group Holdings Bhd., said a April 6 report. (T03/sut)