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Douglas Optimistic Export Duty Adjustment Will Not Affect CPO Exports To China
Douglas Optimistic Export Duty Adjustment Will Not Affect CPO Exports To China
10/12/2013 (Bernama) - Despite the adjustment of export duty on crude palm oil (CPO) from 4.5 per cent to five per cent beginning December, Minister of Plantation Industries and Commodities Datuk Amar Douglas Uggah Embas remains optimistic that the adjustment will not affect exports to China.
"Instead, we noticed that export has increased and become more competitve with Indonesia," he said, adding this was the purpose of adjusting the export tax.
According to the statistics from the ministry, for the period between January and October 2013, export of all palm products to China was at RM9.02 billion (3.9 million tonnes) compared with RM10.03 billion (3.3 million tonnes) in the same period last year.
"The report showed the overall export of CPO had increased, but revenue decreased due to the drop in prices, but the volume of export had risen, " he told a press conference here Monday.
He said this after delivering a keynote address at the Palm Oil Health and nutrition Seminar, in conjunction with the Palm Oil Technical Mission to China from Dec 8 to 10, 2013.
Effective on Jan 1, 2013, Malaysia has lowered the CPO tax from 23 per cent to between 4.5 per cent and 8.5 per cent to trim stockpiles and help Malaysian refiners compete with the world's largest palm oil producer, Indonesia.
Indonesia cut its CPO export tax to nine per cent for November 2013 from 13.5 per cent in October, while Malaysia set its export tax at five per cent in December while the current reference price was set at RM2,452.43 (US$765) per metric tonne.
Douglas expected palm oil exports to China to increase next year due to the increase in population and demand in that country.
He expressed optimism that the seminar would provide more understanding of the nutritional effects of palm oil and he hoped through this, doubts and negative perception surrounding the commodity would be cleared up.
Earlier in his speech, he said Malaysia was concern on the unsubstantiated and negative image projected on palm oil as an unhealthy oil and the misperception was mainly due to the lack of understanding on the saturated fats contained in palm oil.
"Scientific findings, particularly by Chinese scientists led by Prof Zhang Jian, who was also a former expert at the Chinese Center for Disease Control and Prevention, have verified that palm oil is not detrimental to human health," he said.
Douglas reassured that the Malaysian palm oil industry was always committed to supply high quality, reliable and sustainable palm oil to consumers worldwide, including China.
"The Malaysian palm oil industry has implemented various quality assurance schemes to ensure our palm oil export meets international food safety standard," he said, adding the high quality and reliability of Malaysian palm oil had contributed towards international buyers' preference for palm oil from Malaysia.
"I can see the future of palm oil here (China) is very bright," he added.
On another development, Douglas said next year, the Malaysian Palm Oil Council would organise more seminars and talks to enhance the understanding about palm oil, while simultaneously the MPOC office in Shanghai would also help to explain the beneficial effects of palm oil on various industries and products in China.
Today's seminar is organised by the Malaysian Palm Oil Board (MPOB) and was aimed at providing a platform to discuss and exchange information and current views on nutritional issues, facts and researches related to palm oil.
It will also promote interaction between government officials and experts from Malaysia and China.
China is the largest export destination for palm oil and palm oil products from Malaysia, which accounted for 17.7 per cent of Malaysia's total global exports in 2012.
In 2012, Malaysia exported palm oil and palm oil products worth RM12.8 billion (or 4.36 million tonnes).
"Instead, we noticed that export has increased and become more competitve with Indonesia," he said, adding this was the purpose of adjusting the export tax.
According to the statistics from the ministry, for the period between January and October 2013, export of all palm products to China was at RM9.02 billion (3.9 million tonnes) compared with RM10.03 billion (3.3 million tonnes) in the same period last year.
"The report showed the overall export of CPO had increased, but revenue decreased due to the drop in prices, but the volume of export had risen, " he told a press conference here Monday.
He said this after delivering a keynote address at the Palm Oil Health and nutrition Seminar, in conjunction with the Palm Oil Technical Mission to China from Dec 8 to 10, 2013.
Effective on Jan 1, 2013, Malaysia has lowered the CPO tax from 23 per cent to between 4.5 per cent and 8.5 per cent to trim stockpiles and help Malaysian refiners compete with the world's largest palm oil producer, Indonesia.
Indonesia cut its CPO export tax to nine per cent for November 2013 from 13.5 per cent in October, while Malaysia set its export tax at five per cent in December while the current reference price was set at RM2,452.43 (US$765) per metric tonne.
Douglas expected palm oil exports to China to increase next year due to the increase in population and demand in that country.
He expressed optimism that the seminar would provide more understanding of the nutritional effects of palm oil and he hoped through this, doubts and negative perception surrounding the commodity would be cleared up.
Earlier in his speech, he said Malaysia was concern on the unsubstantiated and negative image projected on palm oil as an unhealthy oil and the misperception was mainly due to the lack of understanding on the saturated fats contained in palm oil.
"Scientific findings, particularly by Chinese scientists led by Prof Zhang Jian, who was also a former expert at the Chinese Center for Disease Control and Prevention, have verified that palm oil is not detrimental to human health," he said.
Douglas reassured that the Malaysian palm oil industry was always committed to supply high quality, reliable and sustainable palm oil to consumers worldwide, including China.
"The Malaysian palm oil industry has implemented various quality assurance schemes to ensure our palm oil export meets international food safety standard," he said, adding the high quality and reliability of Malaysian palm oil had contributed towards international buyers' preference for palm oil from Malaysia.
"I can see the future of palm oil here (China) is very bright," he added.
On another development, Douglas said next year, the Malaysian Palm Oil Council would organise more seminars and talks to enhance the understanding about palm oil, while simultaneously the MPOC office in Shanghai would also help to explain the beneficial effects of palm oil on various industries and products in China.
Today's seminar is organised by the Malaysian Palm Oil Board (MPOB) and was aimed at providing a platform to discuss and exchange information and current views on nutritional issues, facts and researches related to palm oil.
It will also promote interaction between government officials and experts from Malaysia and China.
China is the largest export destination for palm oil and palm oil products from Malaysia, which accounted for 17.7 per cent of Malaysia's total global exports in 2012.
In 2012, Malaysia exported palm oil and palm oil products worth RM12.8 billion (or 4.36 million tonnes).