Latest news with #MARGMA
New Straits Times
a day ago
- Business
- New Straits Times
KPK to hold engagement session with palm oil industry players on SST implementation
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) will hold an engagement session with palm oil industry stakeholders on July 3, said Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin. He said the purpose of this meeting is to address various concerns regarding the implementation of the Sales and Service Tax (SST), especially about the interpretation of final products. "The session is important to ensure that all parties within the relevant sectors have a clearer understanding of the actual impact of SST on the supply chain and commodity production. "They have engaged in discussions with the Ministry of Finance, but some issues remain unresolved. Therefore, the ministry has decided to intervene and assist stakeholders in gaining a clearer understanding of the actual situation they are facing on the ground," Chan told Bernama after officiating the Food & Drinks Malaysia (FDM) 2025 exhibition here today. Chan said the confusion surrounding the interpretation of final products stems from situations where products from one factory are used as raw materials by another party to produce various goods available in the market. "The government has no intention of passing the cost on to consumers, but eventually it flows through the supply chain. So, we hope that SST is only imposed on the final product. "However, problems arise when a so-called final product for one party becomes the raw material for another. So how do we define it?" he said. Commenting on the Malaysian Rubber Glove Manufacturers Association's (MARGMA) proposal to postpone the implementation of the 5 per cent SST on natural rubber latex (NR) and nitrile butadiene rubber latex (NBR), Chan said no solution has been found yet, but the ministry welcomes any suggestions to help address the issue. MARGMA cautioned that the implementation of the SST would have a cascading impact on the entire domestic rubber industry ecosystem, including affecting the cash flow of small and medium enterprises (SMEs), slowing down innovation, and undermining Malaysia's position as a global glove manufacturing hub. Cocoa Industry Development In his speech at the event, Chan said the world is currently facing a global shortage of cocoa beans, and the growing demand for sustainable and traceable cocoa is reshaping the industry — a challenge that Malaysia is ready to take on. "We are now actively reviving cocoa plantation development, led by the Malaysian Cocoa Board, to boost land area and upstream bean production. "This initiative is already underway, and we invite investors, cooperatives, and plantation players — both domestic and international — to join this national drive," he said. Chan noted that Malaysia is also shifting its focus to premium cocoa varieties, including fine-flavour beans, single-origin selections, and organic options to meet niche global demands and position Malaysian chocolate at the high end of the value chain. -- BERNAMA
The Sun
a day ago
- Business
- The Sun
KPK to hold engagement session with palm oil industry players on SST implementation
KUALA LUMPUR: The Ministry of Plantation and Commodities (KPK) will hold an engagement session with palm oil industry stakeholders on July 3, said Deputy Minister of Plantation and Commodities, Datuk Chan Fong Hin. He said the purpose of this meeting is to address various concerns regarding the implementation of the Sales and Service Tax (SST), especially about the interpretation of final products. 'The session is important to ensure that all parties within the relevant sectors have a clearer understanding of the actual impact of SST on the supply chain and commodity production. 'They have engaged in discussions with the Ministry of Finance, but some issues remain unresolved. Therefore, the ministry has decided to intervene and assist stakeholders in gaining a clearer understanding of the actual situation they are facing on the ground,' Chan told Bernama after officiating the Food & Drinks Malaysia (FDM) 2025 exhibition here today. Chan said the confusion surrounding the interpretation of final products stems from situations where products from one factory are used as raw materials by another party to produce various goods available in the market. 'The government has no intention of passing the cost on to consumers, but eventually it flows through the supply chain. So, we hope that SST is only imposed on the final product. 'However, problems arise when a so-called final product for one party becomes the raw material for another. So how do we define it?' he said. Commenting on the Malaysian Rubber Glove Manufacturers Association's (MARGMA) proposal to postpone the implementation of the 5 per cent SST on natural rubber latex (NR) and nitrile butadiene rubber latex (NBR), Chan said no solution has been found yet, but the ministry welcomes any suggestions to help address the issue. MARGMA cautioned that the implementation of the SST would have a cascading impact on the entire domestic rubber industry ecosystem, including affecting the cash flow of small and medium enterprises (SMEs), slowing down innovation, and undermining Malaysia's position as a global glove manufacturing hub. Cocoa Industry Development In his speech at the event, Chan said the world is currently facing a global shortage of cocoa beans, and the growing demand for sustainable and traceable cocoa is reshaping the industry — a challenge that Malaysia is ready to take on. 'We are now actively reviving cocoa plantation development, led by the Malaysian Cocoa Board, to boost land area and upstream bean production. 'This initiative is already underway, and we invite investors, cooperatives, and plantation players — both domestic and international — to join this national drive,' he said. Chan noted that Malaysia is also shifting its focus to premium cocoa varieties, including fine-flavour beans, single-origin selections, and organic options to meet niche global demands and position Malaysian chocolate at the high end of the value chain.
Barnama
24-06-2025
- Business
- Barnama
Rubber Prices Likely To Trend Lower Next Week Due To Geopolitical Tensions
By Abdul Hamid A Rahman and K. Naveen Prabu KUALA LUMPUR, June 21 (Bernama) -- The rubber market is expected to trend lower next week, weighed down by escalating geopolitical tensions in the Middle East, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA). A spokesperson from MARGMA said the market sentiment remains fragile and continues to pressure investor confidence and business activities. 'The market may experience a downtrend next week due to escalating geopolitical tensions, persistent global economic uncertainty, and weakening demand from China and the United States. 'The market will remain highly sensitive to regional rubber futures, movements in the ringgit against the US dollar, and fluctuations in crude oil benchmarks,' she said. Meanwhile, industry expert Denis Low said the rubber market is expected to trade cautiously with a lower bias next week, with replenishment activities serving as the primary driver. 'Weather disruptions are another key factor to watch, as the Thai Meteorological Department has warned of intensified Southwest Monsoon activity, which could bring heavy rainfall and strong winds to rubber-producing regions,' he said. On a week-to-week basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) rose by half a sen to 703.5 sen per kilogramme (kg), while latex in bulk increased by 10 sen to 589.0 sen per kg. -- BERNAMA
Barnama
03-06-2025
- Business
- Barnama
Cautious Trading Ahead For Rubber Market Amid Supply Concerns
By Siti Noor Afera Abu KUALA LUMPUR, May 31 (Bernama) -- The local rubber market is likely to remain on a downtrend next week as businesses are still cautious about the global market outlook, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA). The association said prices will likely be affected by the supply shortages due to the weather conditions, the strength of the ringgit, crude oil price movements, and the unpredictable nature of the United States-China trade relations and China's economic policies. 'These will contribute to a volatile and uncertain market for rubber in the coming week,' MARGMA told Bernama. Industry expert Denis Low also echoed this view, noting that weather-driven supply disruptions could further add to market volatility. For the week just ended, the Kuala Lumpur rubber market ended on a downtrend this week, weighed down by declines in regional rubber futures markets, weaker benchmark crude oil prices and a stronger ringgit against the US dollar. On a week-to-week basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 42 sen to 698.5 sen per kilogramme (kg), while latex in bulk decreased by 6.5 sen to 620.5 sen per kg. The Kuala Lumpur rubber market will be closed on June 2, 2025 (Monday) in conjunction with His Majesty Sultan Ibrahim's official birthday and will commence operations on Tuesday. -- BERNAMA
Barnama
26-05-2025
- Business
- Barnama
Rubber Market To Trade In Stable Mode Next Week With Upward Bias
By Nur Athirah Mohd Shaharuddin KUALA LUMPUR, May 24 (Bernama) -- The Malaysian rubber market is expected to trade in a stable mode next week, with a tendency towards an upward bias, amid the ongoing 90-day pause in United States (US) tariffs, which offers breathing space to the global economy. Industry expert Denis Low said that, as a result, prices and demand are likely to remain balanced, with a slight inclination towards higher levels. He opined that the ongoing uncertainties caused by tariffs imposed by US President Donald Trump are certainly eroding economic optimism. 'Whenever optimism is lacking, the desire to be expansionary in all aspects of commerce will be affected. With such negativism prevailing, it can impact most commodities, including rubber, in two ways. 'The lack of optimism will reduce the willingness to increase production adequately. If left unchecked, this can balloon into a shortage, which is already beginning to occur in the rubber sector,' he told Bernama. Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market is expected to face mixed pressures next week, with the potential for supply disruptions balanced by continued demand from key sectors and supportive Chinese policies. The association noted that prices are expected to continue tracking the performance of regional rubber futures markets, the ringgit strengthening against the US dollar and benchmark crude oil prices. 'The wet weather season will continue to affect natural rubber supply in major producing countries, while developments related to US trade negotiations are still causing some uncertainties,' it said.
