KUALA LUMPUR, Oct 16 — Malaysia, the world’s second-largest producer, left the tax on exports of crude palm oil unchanged for a ninth month, helping boost shipments and compete with the biggest supplier Indonesia.
Cargoes will be taxed at 4.5 per cent in November, according to a customs statement cited by Balu Nambiappan, the Malaysian Palm Oil Board’s head of trade development. The reference price was set at RM2,303.06 (US$726) a metric tonne, he said in a phone interview. The tariff was zero in January and February before rising to 4.5 per cent in March.
Exports from Malaysia climbed for a fourth month in September, as reduced supplies of substitutes boosted demand for the most-consumed cooking oil, board data showed. Shipments from Indonesia advanced last month for the first time since May, according to the country’s palm oil association. Indonesia, which last month set its export tax at 9 per cent for October, may announce next week the levy for November.
“Malaysia’s crude palm oil has an advantage compared to Indonesia’s” as the tax remains lower, said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd. “This should bode well for Malaysia’s exports.”
Shipments gained 6.6 per cent to 781,043 tonnes in the first 15 days of October from the same period a month earlier, Intertek said today. Sales rose 5.2 per cent to 1.61 million tonnes last month, the board said October 10.
Exports from Indonesia gained 11 per cent to 1.64 million tonnes in September from a month earlier, the Indonesian Palm Oil Association said October 14.
Futures for delivery in December rose 0.6 per cent to RM2,376 a tonne on the Malaysia Derivatives Exchange at the midday close in Kuala Lumpur today. — Bloomberg
