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SOPPOA: Malaysian palm oil futures to remain favourable

Thursday, 6 January 2022

KUCHING: Malaysian palm oil futures are expected to remain favourable in the first half of 2022, says Sarawak Oil Palm Plantation Owners Association (Soppoa) chairman Eric Kiu Kwong Seng.

However, he said as a commodity, CPO price is subject to correction.

He added that crude palm oil (CPO) price for 2021 was phenomenal and many growers were blessed with the high price. “Despite labour shortage still being the main challenge, the situation may improve as Malaysia is likely to ease some migrant labour travel restrictions as vaccination levels progress in the country.

“On this note, Soppoa is thankful to the Sarawak government for providing a mass vaccination programme for every worker in the industry including undocumented migrant workers since last year.

“To date, many oil palm plantation workers have received and are receiving their booster shots,” he said during his opening remarks at a live webinar, Malaysia Budget 2022 Briefing with the theme: How Proposed Tax Changes Affecting Business (including oil palm), on Tuesday.

During the webinar, Soppoa invited two speakers from Ernst & Young to deliberate on how the recent proposed tax changes affect the business wellbeing of palm oil industry.

Tax partner of Ernst & Young Tax Consultants Sdn Bhd Sarawak office, Linda Kuang, shared key updates in the 2022 National Budget concerning corporate taxation, such as the taxation of foreign-sourced income, ‘cukai makmur’, extension of the time limit allowed for unutilised business losses, and withholding tax on payments to individual agents, among others.

She also provided updates on reinvestment allowance tax incentives, double deduction, and special tax deduction incentives and stamp duty that may affect Soppoa members as well as developments on individual taxation and real property gains tax.

Meanwhile, Ernst & Young Tax Consultants Sdn Bhd Sarawak office manager Aaron Kong shared with Soppoa members the key 2022 National Budget highlights in relation to indirect taxation, including the recently launched Voluntary Disclosure and Amnesty Programme for indirect taxes, as well as updates on sales tax, service tax, and excise duties.

Reproduced from The Borneo Post