Confidence in PN government lifts palm oil prices

BANGI: The high crude oil prices (CPO) over the last few months were partly contributed by the confidence of other trading countries on the Perikatan Nasional government, according to Malaysian Palm Oil Board chairman Datuk Ahmad Jazlan Yaakub.

The current government's good diplomatic relations, especially with key CPO buyers such as India and China, have led to stronger exports on a year-on-year basis and as a result lifted CPO prices.

This is further supported by the government's initiatives to completely exempt the export duty of CPO, crude palm kernel oil and RBD palm kernel oil under the Penjana stimulus package.

Ahmad Jazlan, who is also Machang MP from UMNO, said the CPO has touched RM3,581.50 per tonne on Nov 19, which is the highest level since 2012.

"The performance of CPO price for the period of Jan-Oct 2020 which was RM2,583.50 per tonne, increased by RM575 or 28.6% compared to RM2,008.50 per tonne in the same period in 2019," said Ahmad Jazlan.

Speaking during a press conference on Monday, he expects the CPO prices to remain above RM3,000 per tonne by end- 2020 and moving into 2021.

"The increase in the CPO and fresh fruit bunches prices contributes to the income of plantation operators and smallholders as well as the country's export income.

"Among the factors that led to the higher prices are low palm oil stocks, low palm oil production, high exports of palm oil and rising oil prices of competitors," stated Ahmad Jazlan.

Thanks to the high CPO prices, Ahmad Jazlan expects the government to receive RM348mil in windfall tax revenue in 2020.

In contrary, the windfall tax collection last year stood at a meagre RM258,000, owing to low CPO prices.

According to Ahmad Jazlan, in Peninsular Malaysia, a windfall tax of 3% is only imposed when CPO prices are above RM2,500 per tonne.

Meanwhile in Sabah and Sarawak, windfall tax is imposed at 1.5% once CPO prices breach above RM3,000 per tonne.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

CPO , palm oil , Malaysian Pam Oil Board


Did you find this article insightful?


64% readers found this article insightful

Next In Business News

Poh Huat says 543 workers tested positive for Covid
Advancecon unit takes on ECRL subgrade works for RM60.58mil
Bursa bounces higher on Health DG's comments
Hefty fines for unlisted public firms raising funds without prospectus
Kamal Khalid joins Celcom as chief corporate, transformation officer
Public Bank shares jump as bonus shares go ex
Tencent shares drop after nearing US$1 trillion valuation
Ringgit reverses recent losses against greenback
Quick take: Key ASIC rises 16% on new contract
Bursa rebounds, Public Bank, semicon top gainers

Stories You'll Enjoy