KUALA LUMPUR (Oct 29): The government is gathering industry feedback on a proposal to temporarily suspend crude palm oil (CPO) export duties to ease stock pressure and boost exports, Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said.
Malaysia’s palm oil stocks hit a record 3.51 million tonnes in September, while production also reached an all-time high ahead of the usual peak season in October.
Speaking in the Dewan Rakyat on Thursday, Noraini said her ministry had held an engagement session with palm oil industry players on Oct 20 to gather feedback on the proposed exemption.
“Matters related to the exemption or postponement of the tax actually fall under the jurisdiction of the MOF (Ministry of Finance), but we took the initiative to engage with the industry to obtain feedback,” Noraini said.
“However, we did not conduct the engagement on our own. Representatives from the MOF also joined us because we believe the proposed postponement of CPO export duties is subject to review, and the final decision rests with the MOF, in line with existing government policy,” she added.
Noraini was responding to a query raised by Teresa Kok (Pakatan Harapan-Seputeh) in Parliament, who suggested suspending CPO export duties for three to five months to stimulate exports, ease stockpiles and improve the competitiveness of the palm oil industry.
Noraini said the MOF was responsible for decisions on tax exemptions or deferments, adding that its representatives had participated in the industry engagement session.
She said both ministries would continue working together to provide input and economic analysis to support the government’s policy considerations.
Noraini also stressed that the interests of the entire palm oil industry, including smallholders, would be taken into account.
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