KUALA LUMPUR, March 2 — The latest tariffs imposed by the United States (US) only have a minimal impact on Malaysia’s palm oil exports, according to Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
She said the US is not a major market for Malaysian palm oil, with exports to the country accounting for only 1.1 per cent unlike key markets such as India, Kenya, and China.
“In terms of impact, the effect is still manageable and does not significantly affect export performance, with palm oil usage in the US depending on industry requirements,” she said in response to a supplementary question from Senator Michael Mujah Lihan during a question-and-answer session in the Dewan Negara.
The senator wanted to know about the direct impact of the latest tariffs announced by the US on Malaysian rubber and palm oil.
Noraini said there is stable demand from industries in the US, particularly in the bakery and cosmetics sectors requiring palm oil, which is difficult to be substituted with other vegetable oils.
As such, she said, the tariff decision has had a relatively minimal effect on the country’s palm oil export performance.
As for rubber, the minister said the actual impact will depend on the final tariff rate implemented as well as the product scope involved.
“As a mitigation measure, the government is working to intensify efforts to diversify export markets to other regions, and we are trying to reduce dependence on a single market,” she said. — Bernama
