JAKARTA Oct 8 Malaysia will discuss possible
changes to its crude palm oil export tax regime in a meeting on
Friday, and the country may consider limiting plantation
expansion to support falling prices, a government minister said
Late last week, Malaysia, the world's second biggest
producer of the edible oil after Indonesia, delayed taking a
decision on a proposal to cut crude palm oil export taxes to
8-10 percent from 23 percent as the cabinet needed more time to
study the plan.
"The Malaysian cabinet will discuss the changes on palm oil
export tax structure next Friday," said Bernard Dompok,
Malaysia's plantation industries and commodities minister,
following talks with Indonesia's agriculture minister in
Palm oil markets have been waiting for Malaysia to come up
with a strategy to counter top producer Indonesia's move last
year to cut export taxes of refined palm oil and boost margins
for its downstream processing industry.
In order to help prevent further declines in palm oil
prices, both countries agreed to work together to manage
supplies and work on environmental issues.
"There are two possibilities in our cooperation with
Indonesia," Dompok said. "First, reducing palm oil plantation
expansion. The other possibility is to increase palm oil use
(and) consumption in Malaysia by promoting biodiesel usage."
(Reporting by Yayat Supriatna; Writing by Michael Taylor;
Editing by Neil Chatterjee)