PETALING JAYA: Demand for Malaysia's crude palm oil (CPO) is expected to remain stable despite the Indonesian government's recent decision to extend its export levy waiver for the commodity.

Given that there is a huge demand for CPO right now, Indonesia's move is not expected to have an impact on the market for the local commodity, said Plantation Industries and Commodities Minister, Datuk Zuraida Kamaruddin.

"There is nothing to be concerned about at this time, (the demand for) our CPO will not be affected. The (global) market is still short of palm oil," she told the media after her working visit to the Chocolate Museum here today.

She was commenting on a news report on Wednesday which stated that Malaysia's CPO exports are expected to fall in the next two to three months, raising the inventory by the end of December 2022 to 2.5 million metric tonnes -- the highest since April 2019.

The projection was based on Indonesia's move to reduce its CPO stocks at cheaper prices and extend its export levy waiver to Oct 31, 2022, after lifting its export ban in May.

-- BERNAMA