Indo ASEAN Relations : News, Updates & Discussions

Malaysia, India aim to repair soured ties that hit palm trade

Reuters | Updated: Mar 2, 2020, 11:40 IST
View attachment 14499
Malaysia's new prime minister Muhyiddin Yassin while signing a document on his first day in office. (Photo: AFP)

KUALA LUMPUR: Malaysia and India will work on improving ties that soured under former Malaysian Prime Minister Mahathir Mohamad and badly affected palm oil trade between the countries, officials from both nations said on Sunday.

India is the world's biggest palm oil importer but its purchases from Malaysia, the second-biggest palm exporter behind Indonesia, dropped drastically in recent months after attacks on India's policies by Mahathir.

Malaysia swore in a new prime minister on Sunday after last week's resignation by the outspoken Mahathir, 94, after a power battle in his coalition government.

Wee Ka Siong, a lawmaker expected to gain a ministerial post, said that mending ties is a priority because Malaysian palm oil producers have been suffering because of India's effective ban on purchases.

"Can we just renegotiate? It’s for my country as well as for my people," Wee stated. "Since we are a new government, let the PM, the new government deal with it. We treasure the friendship with India."

An Indian official with knowledge of the matter said that New Delhi is also keen to improve bilateral ties, including palm oil trading, provided that Malaysia keeps out of India's domestic affairs.

India could also invite the new Malaysian prime minister, Muhyiddin Yassin, for a visit this year, the official said on the condition of anonymity.
India put refined palm oil and palmolein on its list of restricted items on January 8, a move sources said was in response to Mahathir's criticism of its actions in Kashmir and a new citizenship law.

Malaysia's January palm shipments to India tanked 85% from a year earlier to 46,876 tonnes, the lowest since 2011.

India accounted for nearly a quarter of Malaysia's total palm oil exports last year and has been the biggest buyer of Malaysian palm oil for five years.

India's curbs on Malaysian imports disrupted global edible oil trade flows, with Indonesia diverting supplies to India, Malaysia rushing to tap markets left behind by Indonesia and India substituting palm with other oils.

Malaysia Palm Oil News: Malaysia, India aim to repair soured ties that hit palm trade | India Business News - Times of India

With Mahathir gone, it could also mean Pakistan's entry into the FATF blacklist in June, after losing out on their third vote that kept them out of the blacklist.
 
Malaysia aims to resolve palm oil spat with India within a month

The deadline follows this week's swearing-in of a new Malaysian cabinet after Prime Minister Muhyiddin Yassin took office last month.


By Reuters
Kuala Lumpur
March 11, 2020 12:23 IST
1583932791235.png
Palm oil fruits are seen at an African palm oil plantation run by NaturAceites during a temporary state of siege, approved by the Guatemalan Congress following the death of several soldiers in the area, in the village of Semuy II, Izabal Department, Guatemala September 10, 2019. (Photo: Reuters)

Malaysia has set itself a target of a month within which to resolve its trade dispute with India over palm oil, the southeast Asian nation's new commodities minister said on Wednesday.

The deadline follows this week's swearing-in of a new Malaysian cabinet after Prime Minister Muhyiddin Yassin took office last month.

"One of the first moves for the new government is to rebuild the relationship with India, especially for the palm oil issue," Commodities Minister Mohd Khairuddin Aman Razali told reporters after the first meeting of the new cabinet.

India, the biggest buyer of Malaysian palm oil for five years, put curbs in January on purchases, in retaliation for then prime minister Mahathir Mohamad's criticism of its policy on the Himalayan region of Kashmir and a new citizenship law.

Mohd Khairuddin said he wanted to send a delegation to India as soon as possible in the effort to improve ties.

"We will put this on the ministry's first agenda," he told reporters. "I set a time frame of a month."

Malaysia, the second biggest producer of crude palm oil after Indonesia, will look to expand its exports to new markets, such as Russia and the Middle East, he added.

After India's January curbs on imports of refined palm oil from Malaysia, traders had also held off on buying its crude palm oil.

Malaysia's exports to India dropped 54% last month from January, data showed this week.

Malaysia aims to resolve palm oil spat with India within a month
 
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Malaysia aims to resolve palm oil spat with India within a month

The deadline follows this week's swearing-in of a new Malaysian cabinet after Prime Minister Muhyiddin Yassin took office last month.

By Reuters
Kuala Lumpur
March 11, 2020 12:23 IST
View attachment 14708
Palm oil fruits are seen at an African palm oil plantation run by NaturAceites during a temporary state of siege, approved by the Guatemalan Congress following the death of several soldiers in the area, in the village of Semuy II, Izabal Department, Guatemala September 10, 2019. (Photo: Reuters)

Malaysia has set itself a target of a month within which to resolve its trade dispute with India over palm oil, the southeast Asian nation's new commodities minister said on Wednesday.

The deadline follows this week's swearing-in of a new Malaysian cabinet after Prime Minister Muhyiddin Yassin took office last month.

"One of the first moves for the new government is to rebuild the relationship with India, especially for the palm oil issue," Commodities Minister Mohd Khairuddin Aman Razali told reporters after the first meeting of the new cabinet.

India, the biggest buyer of Malaysian palm oil for five years, put curbs in January on purchases, in retaliation for then prime minister Mahathir Mohamad's criticism of its policy on the Himalayan region of Kashmir and a new citizenship law.

Mohd Khairuddin said he wanted to send a delegation to India as soon as possible in the effort to improve ties.

"We will put this on the ministry's first agenda," he told reporters. "I set a time frame of a month."

Malaysia, the second biggest producer of crude palm oil after Indonesia, will look to expand its exports to new markets, such as Russia and the Middle East, he added.

After India's January curbs on imports of refined palm oil from Malaysia, traders had also held off on buying its crude palm oil.

Malaysia's exports to India dropped 54% last month from January, data showed this week.

Malaysia aims to resolve palm oil spat with India within a month
India modifies rules for refined palm oil imports
MUMBAI: India on Monday said imports of refined palm oil could recommence after being restricted in January, although with conditions attached.

The world's biggest importer of palm oil on Monday said in a statement that importers would need to furnish pre-purchase agreements and import the commodity within six months of receiving the licence, instead of 18 months previously.

The change could increase imports of refined palm oil in coming months, said a Mumbai-based refiner. "The government might be worried about supplies due to the (coronavirus) lockdown," the refiner said.

Palm oil accounts for nearly two-thirds of India's total edible oil imports. India buys more than 9 million tonnes of palm oil annually, mainly from Indonesia and Malaysia. Indonesia is the world's biggest producer of palm oil, followed by Malaysia. - Reuters
India modifies rules for refined palm oil imports
 
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Malaysia palm oil exports to India hit new record low
PALM oil shipments from Malaysia to top customer India may plunge to a fresh record low in April as the Covid-19 lockdown and punitive import curbs cause demand to dry up. Malaysia, the No. 2 producer, exported just 10,806 tons to the country in March, according to Malaysian Palm Oil Board data. That's a whopping 97 per cent slump from a year earlier and the lowest monthly total in board data going back to 2000.

Punitive tariffs, import curbs on refined palm oil, the depreciating rupee and the general slowdown in economic activity due to virus restrictions are all going to push Indian palm imports further down in April, according to Sathia Varqa, owner of Palm Oil Analytics in Singapore. "April could see a number lower than 10,000 tons for the first time," he said. While there's still some edible oil demand, it isn't for palm oil at the moment due to the tropical oil's narrow discount to rival oils, Varqa said. "India is likely to rely more on soybean oil and sunflower oil in April," he said.

Veteran industry analyst Dorab Mistry, a director at Godrej International, said on Friday that India's edible oil purchases may contract by 1.5 million tons in 2020, led by lower palm oil and lauric oils. The industry must be prepared for "cruel" prices as it faces challenges similar to those faced by crude oil and OPEC, he said in an interview.

Still, demand may pick up from May onward as the recent slide in Malaysian palm oil prices attracts buying interest, according to Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based broker and consultant. "Malaysian crude palm oil prices are now at a sizable discount over Indonesian offerings," Bagani said. "If that price balance remains the same, we may see India resuming Malaysian palm oil imports in May and June."

The pandemic scuppered the bullish run in benchmark futures in Kuala Lumpur, sending them into a bear market. The edible oil has tumbled about 35 per cent so far this year in the biggest annual drop since the 2008 financial crisis, and fell below RM2,000 a ton on Tuesday for the first time since July. – Bloomberg
 
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Here we go again. Curious timing wouldn't you agree ? Maybe testing waters for FATF votes ?

India sends formal request to Malaysia for Zakir Naik extradition

ANI | Updated: May 14, 2020, 19:34 IST

NEW DELHI: The Indian government has sent a formal request to Malaysia for the extradition of controversial Islamic preacher Zakir Naik, sources told ANI on Thursday. "The government has sent a formal request to Malaysia for the extradition of Zakir Naik, and the government is pursuing it," sources said.

Naik, who has been living in Malaysia for the last three years, is facing charges of inciting communal disharmony and committing unlawful activities in India. He is also facing probe both in India and Bangladesh in connection with the terror attack at the Holey Artisan Bakery in Dhaka on July 2016.

In September, Prime Minister Narendra Modi had met his Malaysian counterpart Mahathir Mohamad on the sidelines of the 5th East Economic Forum in Russia. Following their meeting, Indian Foreign Secretary Vijay Gokhale had said that the two leaders discussed the extradition of Naik.

"Prime Minister Modi raised the issue of Zakir Naik's extradition. Both the parties have decided that our officials will stay in contact regarding the matter and it is an important issue for us," Gokhale had said then.

 
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Indonesian coal miners suffer impact from India’s lockdown
Indonesian coal miners are struggling with slow demand this year as businesses in India, one of the country’s major coal markets, hit the brakes due to a prolonged lockdown to contain the COVID-19 outbreak, a data firm has said.

The South Asian country’s coal imports, a commodity mostly used for power generation, is projected to decrease by 19.1 percent year-on-year (yoy) to 149 million tons, according to IHS Markit.

As India’s demand slows, IHS Markit projects a 10 percent yoy decline in Indonesian coal exports to 406 million tons this year, from last year’s figure of 451 million tons.

IHS Markit coal, metals and mining senior director James Stevenson said India’s lower import projection was a result of slumping business and industrial activity during the country’s prolonged lockdown.

“The real change came with the lockdown in India. India, of course, is a pretty big market for Indonesian coal, [and] we now expect India to reduce its imports by about 35 million tons,” James told The Jakarta Post via phone call last Friday.

The consultancy initially projected Indonesian coal exports at 419 million tons before India announced an extended lockdown and before market conditions worsened in Southeast and East Asia, which are Indonesia’s other major coal export markets.

India went into lockdown on March 24, when most businesses shut down. The country has extended the lockdown four times, with the latest announced on Sunday and expected to last until May 31.

“But also, once the lockdown officially ends, it’s going to take a long time to restart the economy,” James added.

Indonesia is the world’s largest coal producer and dry fuel contributes 14 percent of the country’s exports, Statistics Indonesia (BPS) data shows.

Indonesia’s trade balance recorded a deficit of US$350 million in April, as exports fell 7.02 percent, on the back of falling commodity prices and plummeting global demand due to the pandemic.

Indonesia’s two most profitable coal miners last year, privately owned PT Adaro Energi and state-owned PT Bukit Asam (PTBA), previously highlighted India’s lockdown as notable risks going into the second quarter, aside from declining local demand.

Adaro and Bukit Asam executives have stated that the companies would redirect exports into other Southeast and East Asian markets.

“India’s lockdown did result in lower sales to India. But Adaro’s market is widespread, so we could divert sales,” said Adaro president director Garibaldi “Boy” Thohir.

Adaro shipped 19 percent of its first quarter production to India. The company also shipped to China, East Asia, Southeast Asia, including within Indonesia, and other markets, such as New Zealand, Pakistan and Europe.

The miner’s profit shrank 17.36 percent yoy to $98.17 million in the first quarter amid falling coal prices and slumping demand in Asia.

“PTBA can still sell to India but only via private harbors whose numbers are not that great,” said Bukit Asam commerce director Adib Ubaidillah previously.

Adib added that PTBA was looking at other Asian markets, such as Brunei, Hong Kong, South Korea, Thailand and Vietnam, as new export destinations.

PTBA’s latest quarterly financial report revealed that the company's profits fell 20.5 percent annually to Rp 903.24 billion from January to March.

Data from India’s state-owned electricity dispatcher, POSOCO, shows that coal power generation plunged 32 percent in late March, when the country entered lockdown. At the same time, gas and renewable energy generation, led by hydropower, began rising incrementally.
 
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Business ties between India and Malaysia improve as political relationship makes headway

By WION
New Delhi, May 30, 2020, 12.44 PM(IST)
Written By: Sidhant Sibal
1590850685772.png
Palm oil, Photograph: Reuters

Story highlights : While Indian oil refineries are importing more crude palm oil, Malaysian import of rice and sugar from India has reached a record level.

As India Malaysia Political ties improved under the new Malaysian PM Muhyiddin Yassin, business ties between the two countries have also seen some breakthrough.

While Indian oil refineries are importing more crude palm oil, Malaysian import of rice and sugar from India has reached a record level. Due to the export levy imposed by Indonesians, Malaysian palm oil is comparatively cheaper.

The high-level engagement has already started between New Delhi and the new Malaysian government. External Affairs Minister S Jaishankar recently spoke to new Malaysian foreign minister Hishammuddin Hussein.

Indian high commissioner to Malaysia Mridul Kumar has also met Malaysian foreign minister Hishammuddin twice. Indian high commissioner was the first envoy received by the Malaysian foreign minister on March 18, the day when he took charge.

Ties between Delhi and Kuala Lumpur went downhill under the previous Malaysian government led by Mahathir bin Mohamad. Mahathir had taken a very anti-India stance on several issues, irking New Delhi.

However, ties have improved lately and both sides have been working together in COVID-19 pandemic fight. India had sent hydroxychloroquine to Malaysia and both sides have been supporting each other in repatriation efforts.

India had allowed more than 18 Malaysian flights, which is one of the largest numbers of flights given go-ahead by India for any foreign country, to leave the country during the lockdown to enable Malaysian nationals to reach home.

Meanwhile, India has repatriated a total of around 3200 Indians since mid-march including 1700 under Vande Bharat Mission. More are expected to be repatriated in the coming days.

 

India, Cambodia to start direct air linkages to boost tourism sector​

India and Cambodia have decided to start direct air linkages between the two countries with impetus on tourism after the COVID-19 pandemic hit the sector.

"We are trying to start direct air linkages between India and Cambodia which would give a great impetus to tourism. When there are direct flights, people would love to come and see Angkor Wat and Cambodians would love to see the land of Buddha," said Devyani Khobragade, India's Ambassador to Cambodia.

What the Taj Mahal is to India, Angkor Wat is to Cambodia. The city of Angkor is also home to the UNESCO World Heritage site, Angkor Wat. Angkor is one of the most important archaeological sites in South-East Asia.

Angkor Wat is a temple complex in Cambodia and one of the largest religious monuments in the world.

Regarding Vice President Jagdeep Dhankar's visit to Cambodia to attend the ASEAN-India Commemorative Summit and the 17th East Asia Summit, Khobragade said, "VP's first official visit abroad is to Cambodia. India in Cambodia is celebrating 70th anniversary of our bilateral relations.We have been trying to increase institutional linkages in various sectors.We signed four MoUs during the visit."

"The agreement is between Cambodia's External Affairs Ministry and the Government of India. India will give USD 70000 for the project for funding the local body APSARA, which will be doing the restoration work, " DS Sood a conservation expert who is associated with the ongoing Archaeological Survey of India's restoration work at the famed Ta Prohm Temple in Angkor Wat told ANI.

India has been for long associated with the restoration work of temples in Cambodia.

Meanwhile, another MoU that was signed on the sidelines of the ASEAN Summit was between the IIT, Jodhpur, and the Institute of Technology, Cambodia in the field of Research, Development, and Application of Technology for Digital Documentation of Cultural Heritage.

A third MoU was signed in the field of health and medicine between the Ministry of Health and Family Welfare of India and the Ministry of Health, Cambodia.

Another agreement signed was regarding the reintroduction of tigers in Cambodia between the Ministry of Environment, Forests and Climate Change, India and the Ministry of Environment, Cambodia for Cooperation in Biodiversity Conservation and Sustainable Wildlife Management.

"We will start with capacity building of the tiger ecosystem in Cambodia followed by the transfer of tigers. Third MoU in the area of digital conservation of cultural heritage between IIT Jodhpur and the Institute of Tech of Cambodia. It would help in mapping temples of Indian origin in Cambodia," said Khobragade.

"The fourth one is for the restoration of Ramayana murals in Wat Bo, it is a living pagoda in Siem Reap. This is part of our preservation of the Ramayana trail from India to South East Asia," added Khobragade.

India is funding the conservation work of ancient Ramayana-based murals in Angkor Wat's Wat Raja Bo Pagoda in Cambodia's cultural town of Siem Reap.

The murals depict the Indian cultural impact on Cambodian society.

The Financing Agreement on Conservation and Preservation of Wat Raja Bo Pagoda Paintings is one of the four agreements signed today between India and Cambodia - in the fields of culture, wildlife and health.

Meanwhile, Dhankar departed to Siem Reap from Phnom Penh. In Siem Reap, he will inaugurate the Hall of Dancers at the Ta Phrom temple. The Vice President will also pay a short visit to Angkor Wat temple where India had done work during the 80s.

He is set to inaugurate the recently restored 'Hall of Dancers' at the famed Ta Prohm temple, located inside the Angkor Heritage Park adjacent to the cultural and tourist province of Siem Reap.

Made famous in the 2001 film, 'Tomb Raider' starring Angelina Jolie, the restoration work at the sprawling and quiet Buddhist monastery of Ta Prohm has been completed by the Archaeological Survey of India (ASI).