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Malaysian analysts expect lower crude palm oil prices in 2023

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Malaysian analysts expect lower crude palm oil prices in 2023

Malaysian analysts expect lower crude palm oil prices in 2023

Malaysian analysts on Wednesday foresaw crude palm oil (CPO) prices to trend lower in 2023 on increased supply and slow demand.

Malaysia’s leading securities and investment group, Affin Hwang Investment Bank, said in a note that it believed that CPO prices could be supported at 3,700 ringgit.

That’s about 846 dollars to 4,000 ringgits (914 dollars) per tonne in the short-term, given the seasonally low production period in major producing countries of Indonesia and Malaysia due to the monsoon season.

However, for the full year of 2023, it anticipated CPO prices to potentially be lower year on year given the expectation that global production.

Production of the eight major vegetable oils would increase further in the 2023 season.

Also, it said the looming global recession could potentially curb consumption in many markets.

According to the research house, there are many uncertainties and price-determining factors to watch out for, which included the global harvest progress and actual yields achieved for all major edible oils.

Read Also: World Bank downgrades 2023 global growth forecast to 1.7%

And quantum of purchases from major importing countries, uncertainty over the export corridor for Ukrainian products, biodiesel production, weather developments, as well as Malaysian and Indonesian production and stock movements.

“We are keeping our CPO average selling price assumptions of 3,100 ringgits (709 dollars) to 3,200 ringgits (732 dollars) per ton for 2023,’’ it said.

Meanwhile, Hong Leong Investment Bank Research said in a note that it maintained the 2023-2024 CPO price assumptions of 4,000 ringgits (914 dollars) per ton to 3,800 ringgits (869 dollars) per tonne.

“We believe CPO price will sustain at above 4,000 ringgits (914 dollars) per ton over the next few months, possibly until the first quarter, and start trending down from the second quarter onwards,’’ said the research house.

It said the CPP stockpile will likely remain on a downtrend in the next few months, on the back of a seasonally low production cycle.

CGS CIMB, on the other hand, said in a note that it expects CPO prices to average 3,800 ringgits (869 dollars) per ton in 2023.

It predicted that the workers’ shortage issue would ease in mid-2023, boosting palm oil production.

However, it added that costs of production may stay high due to the full-year impact of minimum wage and higher fertiliser costs.

CGS CIMB expects CPO prices to soften from the second quarter onwards this year as palm oil output recovers with the entry of more foreign workers, while slower global growth could curb demand.

According to CGS CIMB, Malaysia’s total palm oil output grew 2 per cent to 18.45 million tonnes in 2022.

The rising mature palm oil area more than offset lower CPO yields due to shortages of foreign workers. (Xinhua/NAN)

Malaysian analysts expect lower crude palm oil prices in 2023
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China Introduces Instant Tax Refunds for Foreign Tourists to Boost Shopping Experience

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China Introduces Instant Tax Refunds for Foreign Tourists to Boost Shopping Experience

China has revamped its tax refund policy for foreign tourists, shifting from a refund-upon-departure model to a more convenient refund-upon-purchase system, according to the State Taxation Administration (STA).

The STA announced on Tuesday that under the new system, foreign visitors can now claim Value Added Tax (VAT) rebates instantly at designated tax-free stores. This change allows tourists to use their refunded amount immediately for additional shopping, enhancing their overall experience in China.

Previously, VAT rebates could only be withdrawn upon departure, but with the new policy, tourists will be able to access their refunds in real-time during their stay. The policy, which was initially tested in cities like Shanghai, Beijing, and Guangdong, has now passed all operational requirements and will be rolled out nationwide.

The STA emphasized its dedication to improving policy guidance and simplifying refund procedures to better serve international visitors.

Li Xuhong, Vice-President and Professor at the Beijing National Accounting Institute, welcomed the change, stating that the nationwide implementation would raise China’s tourism service standards. “It will foster a friendly, efficient, and convenient tourism environment,” Xuhong added.

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Nigeria Reaffirms Commitment to One-China Policy Amid Taiwan’s Trade Office Claims

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Nigeria Reaffirms Commitment to One-China Policy Amid Taiwan's Trade Office Claims

Rep. Jaafaru Yakubu, Chairman of the House of Representatives Committee on China-Nigeria Parliamentary Relations, has reiterated Nigeria’s firm commitment to the One-China Policy, following recent comments by Taiwan’s Trade Mission Head in Nigeria, Andy Yih-Ping Liu.

Speaking in Abuja on Tuesday, Yakubu firmly declared that Nigeria continues to recognize Taiwan as an integral part of the People’s Republic of China. He rejected Liu’s claim that Taiwan was not part of China, labelling it as “propaganda” aimed at undermining the strong diplomatic ties between Nigeria and China.

“For the record, United Nations General Assembly Resolution 2758, adopted in 1971, recognised the People’s Republic of China as the sole legitimate representative of all of China, including Taiwan,” Yakubu stated. “The One-China Policy remains the cornerstone of China-Nigeria relations.”

He emphasized that since Nigeria and China established diplomatic ties in 1971, the country has consistently upheld this principle. “Efforts by Taiwan’s trade office to challenge this stance are futile and will not succeed,” Yakubu added.

Yakubu criticized Liu’s comments as an attempt to draw Nigeria into China’s internal matters, accusing the Taiwanese official of deliberately sowing discord and provoking a diplomatic rift. “Nigeria’s relationship with China is built on mutual respect and non-interference in each other’s political matters,” he said.

In response to Liu’s claim that China acted as a bully, Yakubu pointed to the positive trajectory of Nigeria-China relations. “Contrary to these baseless assertions, Nigeria has enjoyed a mutually beneficial partnership with China, yielding tangible results for both nations. Since 1971, our ties have grown significantly.”

He highlighted the strategic nature of the partnership, referencing the elevation of the relationship to a Comprehensive Strategic Partnership during the 2024 FOCAC Summit in Beijing. “Today, Nigeria stands as China’s second-largest trading partner in Africa, with bilateral trade surpassing 20 billion dollars,” Yakubu noted.

Furthermore, Yakubu praised China’s role in Nigeria’s infrastructural development, with investments in sectors such as rail networks, roads, ports, power stations, and water treatment facilities.

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Shettima Warns Media Against Romanticising National Challenges

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Shettima Warns Media Against Romanticising National Challenges

Vice President Kashim Shettima has cautioned Nigerian media practitioners against the growing tendency to romanticise serious national issues, describing the trend as a dangerous departure from the media’s constitutional duty of promoting truth and accountability.

Represented by his Special Adviser on Special Duties, Modibbo Umar, the Vice President issued the warning on Tuesday while delivering a speech at the 17th LEADERSHIP Conference and Awards held at the Old Banquet Hall of the State House, Abuja.

“We must resist the temptation to romanticise serious national issues or frame them in ways that distort public understanding,” Shettima said. “Doing so only weakens the fabric of our democracy and derails our collective efforts at nation-building.”

The Vice President’s remarks came as stakeholders in governance, business, and civil society gathered to reflect on the theme of the event, “Challenges and Opportunities in Nigeria’s Fiscal Federalism.” The conference provided a platform for thoughtful engagement on some of the country’s most pressing issues, with a focus on the responsibilities of leadership at all levels.

Shettima also used the occasion to commend LEADERSHIP Newspapers Group for its consistent contributions to national discourse and its commitment to celebrating excellence in leadership.

“I commend LEADERSHIP Newspaper for the vision to convene this vital discourse and for shining the light on those who have chosen to lead with courage and competence. May we never tire of striving for a better Nigeria,” he said.

The annual LEADERSHIP Conference and Awards continues to be a major event that brings together influential voices to deliberate on national progress and honour individuals and institutions making meaningful impact in society.

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