There is some new development happening in Malaysia local news especially for the plantation counters. Yesterday there was a news coming out stated that the Malaysia's government is considering a request by domestic palm oil producers, including Sime Darby Bhd and Kuala Lumpur Kepong Bhd, to scrap a windfall tax after the price of the commodity slumped.
This is good news as it would help the Malaysian share market if this becomes a reality. The time has arrive for the government of Malaysia's to reconsider this request as it can help the local plantation company and even the Malaysia bourse. The tax was introduced last July 2008 when the price of palm oil was almost double the current level. The tax was applied to planters when they sold palm oil for more than RM 2,000 (USD 560) a metric ton, and at a time when the vegetable oil fetched RM 3,575 on the Malaysian market. Palm oil for April delivery now sells for RM 1,860.
Whether this would be an "Ang Pow" news for the share market, we will have to wait further for the Government of Malaysia's to announce their decision. It is time for us right now to pay a little bit of attention for the plantation counters. Who knows ?
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