Genting Plantations expects palm product prices to remain stable in the near term
27/08/2025 (The Star Online), Petaling Jaya - Genting Plantations Bhd, which posted higher revenue and profitability for the second quarter ended June 30 (2Q25) as well as for the first half of the year (1H25), anticipates palm product prices to remain stable in the near term.
This outlook is supported by improved export momentum, thanks to price competitiveness against soybean oil.
Additionally, higher biodiesel mandates in Indonesia, Brazil, and the US are also helping support prices.
Nonetheless, the plantation group said that seasonally higher production and the absence of festive-driven demand, coupled with ongoing uncertainties surrounding trade policies, may limit the upside potential for prices
"Barring any weather anomalies, the group expects fresh fruit bunches (FFB) production to improve in the remaining months of the year, underpinned by anticipated crop recovery and progression of existing mature areas into higher yielding brackets in Indonesia," it said in a statement.
In the 2Q25, its net profit came in RM192.57mil, bringing 1H25 figure to RM253.83mil. Revenue for the 2Q stood at RM766.99mil, while first-half revenue reached RM1.49bil. This was underpinned by higher palm product prices and higher revenue arising from the sales of land in property segment, which compensated for the lower sales volume at the downstream manufacturing segment.
The group achieved crude palm oil price of RM3,802 per metric tonne (mt) and RM3,969 per mt in 2Q25 and 1H25 respectively. Meanwhile palm kernel price in 2Q25 and 1H25 were RM3,404 and RM3,361, respectively.
The company declared an interim single-tier dividend of 10.0 sen per ordinary share.
Plantation Ministry submitting SST exemption request for crude palm kernel oil, palm kernel olein to MOF, Parliament hears
26/08/2025 (The Edge Malaysia), Kuala Lumpur - The Ministry of Plantation and Commodities is submitting a request to the Ministry of Finance (MOF) for crude palm kernel oil (CPKO) and palm kernel olein to be exempted from the sales and service tax (SST), both of which are currently taxed at a rate of 5%.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the ministry had reviewed feedback from its engagement sessions with industry players on the impact of SST implementation.
“The exemption is reasonable as both are raw materials in the production of oleochemical products and not finished goods, which are subject to government tax.
“Proposals related to SST exemptions or relief for certain critical services essential to industry operations have also been considered to ease cost pressures,” he said during a question-and-answer session in the Dewan Rakyat on Tuesday.
He said this in reply to a question from Teresa Kok Suh Sim (Pakatan Harapan-Seputeh) on the impact of the SST expansion on the palm oil industry, particularly the downstream oleochemical sector.
To maintain the industry’s competitiveness in the international market, Chan said his ministry's efforts include the implementation of the Malaysian Sustainable Palm Oil (MSPO) certification scheme, development of traceability systems along the supply chain of oil palm products, and adoption of new technologies.
The ministry had also focused on strengthening research and innovation, diversifying higher value-added oil palm products, as well as trade promotion and diplomacy.
Chan added that the ministry is still waiting for an official written confirmation from the MOF on the tax exemption for oleochemical raw materials, although the matter was verbally conveyed during an engagement session on July 15 with the Malaysian Palm Oil Association (MPOA), the Palm Oil Refiners Association of Malaysia (PORAM) and several other industry groups.
“The MOF has verbally informed us that these materials are exempted, but we are still waiting for the official confirmation in black and white,” he said.
He said this in reply to Kok’s supplementary question on when the SST exemption for CPKO would be finalised, as well as the ministry’s policies and action plans to help the palm oil industry navigate challenging global markets such as the US and reduce reliance on crude palm oil exports.
On the US market, Chan noted that tariff rates had dropped to 19%, but last year, Malaysia’s oil palm exports to the US only accounted for 1.1% of its total palm oil exports.
“The US is not our main market. Nevertheless, to strengthen oil palm’s position globally, various measures are being taken, including MSPO certification and leveraging free trade agreements such as the Malaysia-UAE Comprehensive Economic Partnership Agreement and the Malaysia-EFTA Economic Partnership Agreement,” he added.