Oil palm industry concerned over unabated increase of production costs

Apart from the labour woes, the profit margins of oil palm planters are also declining given the massive taxations, duties and levies, says MPOA chief executive officer Datuk Dr Makhzdir Mardan.

KUALA LUMPUR: The Malaysian Palm Oil Association (MPOA) is concerned about the disturbing trends in the industry, which has been saddled with labour issues, increasing cost-incurring regulations and a slew of taxes and CESS duties that is eroding its competitiveness in the global markets.

In addition, the industry is affected by the costly compliance to the certification on sustainability on palm oil, said the association’s chief executive officer Datuk Dr Makhzdir Mardan.