Malaysia's palm oil exports get temporary boost

[SINGAPORE] Indonesia may soon eliminate its export duty of 9 per cent on crude palm oil (CPO), thus levelling the playing field with closest rival Malaysia.

In a bid to boost exports and reduce inventory, Malaysia, the world's largest palm oil producer after Indonesia, had exempted export duty on CPO for two months, beginning September 2014.

But in the same month, Indonesia's export duty on CPO is still 9 per cent. CIMB analyst Ivy Ng believes that Malaysia CPO exports will benefit in the near term as they become more competitive against Indonesian CPO.