MARKET DEVELOPMENT
Palm oil export revenue expected to grow to RM72.25bil: Zuraida
Palm oil export revenue expected to grow to RM72.25bil: Zuraida
19.03.2022 (themalaysianreserve.com) - Palm oil export revenue for 2022 is expected to grow by 11.8 per cent to RM72.25 billion from RM64.62 billion recorded in 2021, says Minister of Plantations, Industries and Commodities (MPIC) Datuk Seri Zuraida Kamaruddin.
She said that based on the projected average CPO price for 2022 of RM4,250 per tonne and the projected CPO production for 2022 of 19.0 million tonnes, it is estimated that the total collection of windfall profit tax levy (WPL) in 2022 would exceed RM1billion.
“The palm oil industry is also estimated to generate another RM2billion worth of tax revenue from export tax in 2022,” said Zuraida.
She is confident that the favourable global prices of commodities and robust growth in the sector will help expedite the National Recovery Plan (NRP).
Meanwhile, export of timber and timber products is expected to be RM24 billion or a rise of 5.52 per cent compared with 2021 (RM22.74 billion in value).
“Plantation owners, from listed conglomerates to smallholders, as well as other industry players all stand to gain from the increased revenue. This “windfall” will translate into higher profitability and lead to the Government increasing its tax revenue,” she added.
This development is timely considering that the Government has spent billions of Ringgit over the past two years to help tide over Malaysians impacted by the twin crises of the Covid-19 pandemic and economic slump.
On its part, the ministry will step up efforts to help industry players under its purview seize this economic opportunity, including opening up more markets for our commodities.
“Over the past two months, I have led extensive trade missions abroad to open up markets for our commodities Countries like Iran, Turkey, India and China have since expressed interests to beef up imports of our commodities. Some countries have already increased their purchase of these products, while others are in the midst of finalising the trade deals,” she explained.
According to the minister, China is expected to import an additional 500,000 tonnes of palm oil from Malaysia in 2022.
India is also expected to be the country’s top market destination for Malaysian palm oil, with an additional import of two million tonnes this year. The country is expected to face edible oil shortages due to its reliance on sunflower oil from Ukraine and changes to Indonesia’s oil palm export policy.
The MPIC will also assist industry players, especially smallholders to make their businesses more sustainable in the future. This includes efforts to automate their businesses, enhance information technology adoption and reduce foreign labour dependency.
This, Zuraida said, is possible with the proper re-investment strategy made viable with their increased turnover. —by AZREEN HANI/ pic by BERNAMA