‘We’re Too Small to Take Retaliatory Action’: Malaysian PM on India’s Palm Oil Boycott

[Smarana Mitra]

Malaysian export refined palm oil to India while Indonesia is exporting crude palm oil. Of course refined palm oil is more expensive then crude.

Malaysia exports both refined and crude palm oil. As of now, palm oil price in Malaysia has crashed due to India banning it. So, cost of all palm oil variety in Malaysia is lower than Indonesia. Also, India is benefiting by buying crude Indonesian palm oil as jobs of refining is being created too.

Nope as India MUST pay more to get supply from Indonesia now as they are the only one that can supply them.

Malaysia will just send their palm oil to BD and other countries - they will just buy less from Indonesia and buy from Malaysia instead. End of the day neither Malaysia or Indonesia lose.

Anyway you have common cause with India as they and China are being targeted by Malaysia for persecuting Muslims?

So Malaysia and Turkey have already started with Kashmir issue.

Cannot wait to see others follow their lead. Indians will be made to account for their occupation and crimes in Kashmir.

The problem here is in trade balance and disruption risks. Many countries try to maintain trade balance as it serves as leverage against currency fluctuation. Also, single seller can cause disruption risk. Forexample, if if Malaysia faces internal disturbance or some palm disease, then there will be a problem for buyers. Countries like BD may buy Malaysian palm oil more out of Ummah solidarity but they can't abandon Indonesia. Moreover, India will also threaten to act against Bangladeshi exports if Bangladesh tries to subvert Indian sanction against Malaysia.

Moreover, EU is now halting palm oil and that will mean that buyers for palm oil are reducing. This will lead to oversupply. Indonesia will sell the extra palm oil to India while Malaysia will have problems.

 

[UKBengali]

The problem here is in trade balance and disruption risks. Many countries try to maintain trade balance as it serves as leverage against currency fluctuation. Also, single seller can cause disruption risk. Forexample, if if Malaysia faces internal disturbance or some palm disease, then there will be a problem for buyers. Countries like BD may buy Malaysian palm oil more out of Ummah solidarity but they can't abandon Indonesia. Moreover, India will also threaten to act against Bangladeshi exports if Bangladesh tries to subvert Indian sanction against Malaysia.

Moreover, EU is now halting palm oil and that will mean that buyers for palm oil are reducing. This will lead to oversupply. Indonesia will sell the extra palm oil to India while Malaysia will have problems.

True that BD will still buy from Indonesia but it will be way less than now.

All that will happen is that Indonesia and Malaysia will end up selling the same amount of Palm oil to non-EU countries as before since demand is the same, but Indonesia will sell more to India and Malaysia will sell less to India.

EU is a separate issue and so do not link this to India not buying from Malaysia.

 

[INS_Vikrant]

Agli baar mu kholne se pehle apni aukat yaad rakhna

Mahatir is a nice and kind person. If there was someone harami person like Modi then he would have kicked out every shameless Indian from his country.

Lol if he tries and next day malaysia would be added as 30th state in the indian union

 

[Baz]

Without opening the thread, I knew it was coming from an indian moron

 

[Laozi]

Is PM Mahathir Mohamad starting to regret his decision to back Pakistani stance on Kashmir?

Why issue such a meek statement ? unless of course he wants to change his stand.

 

[CIA Mole]

Malaysia is much richer than gangustan

 

[Smarana Mitra]

True that BD will still buy from Indonesia but it will be way less than now.

All that will happen is that Indonesia and Malaysia will end up selling the same amount of Palm oil to non-EU countries as before since demand is the same, but Indonesia will sell more to India and Malaysia will sell less to India.

EU is a separate issue and so do not link this to India not buying from Malaysia.

No, it will be hard for anyone to substitute Indian market. There may be some adjustment and reshuffling but at the end of the day, Indonesia has excess capacity due to EU withdrawal from palm oil and hence the countries in the world will not be forced to buy Malaysian palm oil due to lack of Indonesian supply. Malaysia will definitely lose disproportionately.

Yes, the extent of loss will be less, but it will be there.

 

[UKBengali]

No, it will be hard for anyone to substitute Indian market. There may be some adjustment and reshuffling but at the end of the day, Indonesia has excess capacity due to EU withdrawal from palm oil and hence the countries in the world will not be forced to buy Malaysian palm oil due to lack of Indonesian supply. Malaysia will definitely lose disproportionately.

Yes, the extent of loss will be less, but it will be there.

You forgot that growth in BD and some other countries is running at 10% a year.

400 billion US dollar Malaysian economy will not suffer much if it sells a couple of million tonnes or less of Palm oil a year.

In 2018 Malaysia earnt 16.2 billion U.S. dollars by selling Palm oil and Palm oil products. India accounts for roughly 20% and so that is 3 billion US dollars - loss of say 1.5 billion US dollars in worse case is nothing to Malaysia as it adds 20 billion US dollars to it's GDP every year anyway.

This is a massive own goal by India which will only hurt the Indian consumer with higher prices.


PS - You are overestimating EU Palm oil consumption as that is 4 million tonnes in total - just twice what BD consumes and without the 10% a year growth. Malaysia and Indonesia Palm oil exports to EU is just 2 million tonnes which is same as what BD imports!

 

[Areesh]

The poor will take the brunt.

Only the poor Indian consumer will suffer from Modi's chest-thumping.

Good

Didn't you hear the slogan from India

Sookhi roti khaye gai
mullon ko sabaq sikhaye gai

It is time to eat "sookhi roti" for modi bhakts

 

[Lincoln]

Is PM Mahathir Mohamad starting to regret his decision to back Pakistani stance on Kashmir?

Why issue such a meek statement ? unless of course he wants to change his stand.

He's a frank person. Doesn't apply mirch masala like modi and bhakts.

I don't know about his domestic policies, but international stage he calls stuff the way it is.

 

[Zapper]

Without opening the thread, I knew it was coming from an indian moron

Just like how anti-India threads are opened by your lot

 

[Laozi]

He's a frank person. Doesn't apply mirch masala like modi and bhakts.

I don't know about his domestic policies, but international stage he calls stuff the way it is.

So, you think Modi can give a petty statement which is insulting for India. No, He will put Mahathir on the ignore list just like he has done with IK and move on.

 

[Sine Nomine]

So, you think Modi can give a petty statement which is insulting for India. No, He will put Mahathir on the ignore list just like he has done with IK and move on.

Come on man after events of 27 th Feb the way Modi was humiliated by Pakistanis,he has no moral courage to speak unless or untill we get same treatment forget Modi speaking against Pakistan.

 

[Lincoln]

So, you think Modi can give a petty statement which is insulting for India. No, He will put Mahathir on the ignore list just like he has done with IK and move on.

Okay but mahathir doesn't care. Mahathir should continue being frank.

 

[Protest_again]

Okay but mahathir doesn't care. Mahathir should continue being frank.

Lets see if Mahathir still continue to be a loud mouth like Imran. Or he learns his place and minds his business.