The Determinants of Palm Oil Price in Malaysia

Abstract

Malaysia is now the international’s second-top manufacturer of palm oil, with its huge and developing palm oil enterprise, and strong international call for palm oil. Malaysia has the capability to play a first-rate position in international markets. This paper aim to examine the palm oil rate towards palm oil export, import and trade charge withinside the financial system to peer the connection between those variables. Movements in palm oil costs provide crucial alerts to imports, exports, and trade fees in Malaysia’s monetary interest. Thus, to recognize import, export and trade charge elements that can have an effect on the palm oil rate is essential to the enterprise gamers for the sustainability of palm oil activities. Thus, this study investigates the relative significance of imports and exports interest at the motion of palm oil fees in Malaysia’s financial system. By using a regressive version on palm oil fee annual statistics from 2009 to 2020, the findings display that palm oil fee is extra dominant in affecting palm oil import. However, the findings on this examine additionally determined that palm oil fees have an extensively poor relationship with palm oil export and trade charge. This study is crucial because it will provide effect and advantage the monetary and environmental destiny withinside the lengthy term.