Minister: M’sia palm oil exports rise by 55.2 pct from Jan-June 2022
09/08/2022 (Borneo Post Online), Kuching - Malaysia’s palm oil and palm-oil based products export rose by 55.2 per cent between January and June this year to RM67.48 billion, said Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.
This is compared to the RM43.47 billion recorded in the corresponding period in 2021.
She said in a statement that palm oil alone has contributed to 66.1 per cent of the total export earnings, which amount to RM44.63 billion this year compared to RM28.8 billion in the same period last year.
“In terms of volume, the export of palm oil and palm oil-based products between January to June rose by 2.8 per cent to 11.47 million metric tonnes (MT) from 11.15 million MT a year ago.
“Malaysia recorded strong exports despite the drop in crude palm oil (CPO) production in the first half of 2022. Based on statistics by the Malaysian Palm Oil Board, CPO production fell by 1.1 per cent to 8.27 MT during the period compared to 8.36 MT during 1H21,” she said in a statement.
She explained the fall in CPO production is attributed to the dip in fresh fruit bunch (FFB) yield by 3.6 percent to 6.9 tonnes per hectare during the January – June 2022 period compared with 7.16 tonnes per hectare in the same period last year.
She said that on the other hand, the sharp rise in export earnings is partly due to the spike in CPO prices, both domestically and abroad.
Between January and June 2022, CPO prices rose by 55.9 percent to RM6,330 per MT from RM4,061.50 per MT during the same period in 2021.
She said the encouraging results enabled both smallholders and listed-plantation companies to generate higher revenue from the spike in CPO prices which would contribute to various sources of taxation.
In return, the government can carry out relevant socioeconomic programmes that are important for the country’s economic revival from the Covid-19 pandemic.
Despite the current softening of CPO prices, she said the potential of Malaysia’s palm oil remains intact.
“It is also gratifying to note that Malaysia’s golden crop has gained wide global acceptance, as demonstrated by the encouraging export during first half of this year.
“In this respect, I wish to thank my colleagues at the ministry and those spread across related agencies for their aggressive efforts in promoting Malaysian palm oil, particularly during my various trade missions abroad,” Zuraida added.
Zuraida stressed that the ministry remains optimistic for the prospects of Malaysian palm oil in second half of this year, partly due to the greater acceptance of the commodity globally even from non-traditional markets.
She attributed this to the success of the Ministry of Plantation Industries and Commodities (MPIC)’s campaign “The Global Movement to Champion the Goodness of Palm Oil”, which is intended to counter misinformation and false information on the country’s No 1 commodity.