Sabah & Sarawak
Analysts positive on CPO export duty removal, but warns of trade war brewing
While most analysts have been fairly positive in the temporary crude palm oil (CPO) export duty removal that became effective on Monday, there were concerns over a possible trade war brewing with other oil palm producing countries. To recap, the Malaysian government has announced a temporary suspension of the CPO export tax for three months, effective from January 8, 2018 to April 7, 2018.
Export tax suspension to boost upstream plantation players
The government’s decision to suspend the crude palm oil (CPO) export tax for three months is expected to benefit plantation companies with significant upstream operations and strengthen the commodity prices for the first quarter of this year. FGV group president and chief executive officer, Datuk Zakaria Arshad said industry players are faced with issues of high CPO stocks level and strengthening of the Ringgit that have pressured the CPO price to around RM2,500 per MT.
Sabah cement, ecooils ink agreement for ecologicallyprocessed Pozzolan
Cement Industries (Sabah) Sdn Bhd (Sabah Cement) has signed a sales and purchase agreement with Ecooils Sdn Bhd for a 10-year supply of ecologically-processed pozzolan for use in Sabah Cement’s products. Sabah Cement chief executive officer, Bahrul Razha Chuprat, said the processed pozzolan material, an oil palm by-product, would enable the company to produce its blended cement product for infrastructural projects in Sabah.
Mah warns of TIT for TAT over EU’s palm oil threat
Malaysia, Indonesia and Thailand are ready to join forces and retaliate over the European Union’s (EU) threat to exclude palm oil from its biofuel mix and renewable energy by 2021, which is a discriminatory act and amounts to an attack on the palm oil industry. Such action will affect oil palm smallholders more than anyone else, said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong, reiterating a major concern to palm oil producing countries.
Bintulu Port a key trade gateway in Sarawak and Malaysia
RAM Ratings has reaffirmed the AA1/Stable/P1 corporate credit ratings of Bintulu Port Holdings Bhd (BPHB) given its function as a key import and export gateway in Sarawak and in Malaysia. In a statement, it said, the ratings mainly reflect its view of Bintulu Port as a government-linked entity and the high likelihood of extraordinary support from both the federal and Sarawak governments.