WITH Indonesia banning exports of its palm oil, a lawmaker has urged the Government to beef up the Cooking Oil Subsidy Programme (COSS).
“Indonesia’s decision will have an impact on prices of cooking oil in Malaysia. In fact, there have been reports on shortages of Government subsidised cooking oil in the form of 1kg polybag.
“This could be linked to misappropriation, leakages and smuggling activities involving the subsidised cooking oil,” said Bukit Bendera MP Wong Hon Wai, in a statement.
Last week, Indonesian president announced export ban on its palm oil produce in order to keep up soaring domestic demand.
His announcement sent shockwaves across the world as Indonesia is the largest exporter of palm oil in the world, triggering sharp increase of other edible oil such as sunflower, soy oil and canola.
Touching on the matter, Wong said that Malaysia stands to benefit from Indonesia’s ban, given that Malaysia is the second largest palm oil exporter of the world.
He added that Indonesia’s decision will affect Malaysia’s crude palm oil (CPO) prices as well as the Government would be able to collect more revenue; in terms of windfall profit levy and export levy.
“But consumers in Malaysia will have to face reality that cooking oil prices will increase. This is already happening since the CPO International price reaching new heights in recent months.
“Therefore, the Government must use the extra revenue generated contributed by the palm oil industries to relieve consumers’ burden.
“The Government must also address the issues plaguing the Cooking Oil Subsidy Programme and ensure there are sufficient cooking oil available in the market, at an affordable rate,” the DAP leader remarked. – April 26, 2022
