KUALA KANGSAR: The move by the government to extend the export duty exemption for crude palm oil (CPO) has received positve reaction from industry players.
The Malaysian Palm Oil Board (MPOB) chairman Datuk Wan Mohammad Khair-il Anuar Wan Ahmad said the move provided a stable effect on the CPO market prices.
“Other big producers also followed our government’s move and this would give a bigger impact. This trend would lead to the stability of the biodiesel industry,” he told reporters.
Asked on whether the export tax exemption for CPO would be extended until 2015, Wan Mohammad Khair-il said the MPOB was still monitoring the global CPO market prices before making a decison on this.
In Budget 2015, the government extended the tax-free exports of CPO till December this year to support prices and curb the build-up of reserves.
The CPO futures on Bursa Malaysia Derivatives closed higher on Tuesday last week on renewed buying interest, said a dealer.
Phillip Futures Sdn Bhd derivative product specialist, David Ng, told Bernama the CPO futures closed higher on the back of stronger crude oil and soyoil performances.
“However, concerns over poor demand weigh on CPO prices and the lacklustre demand will continue to put pressure on inventories in the country,” he said. — Bernama