MY Morning Wrap | Malaysia Keeps October Crude Palm Oil Export Duty at 8%

Bond yields reached their highest levels since at least 2007, putting pressure on stocks ahead of the Federal Reserve's next interest-rate decision.

Malaysia has maintained its October export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Tuesday. The world's second largest palm exporter calculated a reference price of RM3,710.50 per metric ton for October. The September reference price was RM3,755.13 a ton.

The Statistics Department reported that Malaysia's total trade slumped by 19.8% year-on-year (y-o-y) to RM213.01bil in August, amid slower global demand and lower commodity prices. In August, Malaysia’s exports to the Top 3 markets – Singapore, China and the United States – contracted on a month-on-month (m-o-m) basis. The total trade value also contracted for the third straight month. Geoffrey Williams, an economics professor at the Malaysia University of Science and Technology, raised concerns about the poor trade outlook, considering that trade is a major contributor to economic growth. In 2022, trade is valued at 141% of the national gross domestic product (GDP).

Prime Minister Datuk Seri Anwar Ibrahim said details on the implementation of targeted subsidies will be presented during the upcoming second Madani Budget in Parliament next month. Anwar also said he would present details on taxation issues and increasing national income in the Madani Budget to enable the government to spend according to its capacity.

FSBM's subscription applications for the rights issue in connection with the regularisation plan have reached a subscription rate of 449.57 per cent. "The proposed regularisation plan is in the final stages and the company believes it will help restore performance and exit our PN17 status,” said the company.