Sarawak and Sabah are still growing their plantations at around 1.58 million hectares and 1.54 million hectares respectively. Across Peninsular Malaysia, land for palm oil expansion is limited in availability as most areas have already been planted and urban development is prioritised. This makes easing cost woes for smallholders a policy priority.ДЄnother concern is that Malaysia lacks the infrastructure to retain any market share it gains in the short term. Though global palm oil prices are expected to ease from their record highs with IndonesiaвЂ™s export ban lifted, the costs of fertilisers and agrochemicals are likely to remain high, particularly as the Russia-Ukraine conflict continues. While increasing palm oil exports may provide higher revenue for producers, the cost of fertilisers and agrochemicals has increased in Malaysia, exacerbated by the global shortage of fertilisers caused by Western sanctions on Russia. MALAYSIA UNABLE TO COMPETE WITH INDONESIA?Д«ut the broader impacts of rising inflation on palm oil production costs must be better considered вЂ“ particularly their disproportionate effect on smallholders who produce 40 per cent of MalaysiaвЂ™s palm oil output. It is considering lowering its 8 per cent export tax on palm oil to boost exports. Malaysia aims to take advantage of the global edible oil shortage and regain its market share of palm oil. Although Indonesia lifted the export ban on May 23, exporters and traders are awaiting clarity from the government concerning exporting rules. IndonesiaвЂ™s export ban was initiated in April to bring down persistently high domestic prices that have been on an upward trajectory since mid-November 2021.

IndonesiaвЂ™s export ban on crude palm oil, palm kernel oil and cooking oils added further strain. But as the war continues, supply remains uncertain.

SINGAPORE: With RussiaвЂ™s invasion of Ukraine constricting the global supply of edible oils, demand for palm oil has spiked.

Radiofree sarawak