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Significance

Malaysia, long a major supplier of poultry to the city-state, banned chicken exports last month. Indonesia and Malaysia are the top two exporters of palm oil. Jakarta lifted a ban on exports of crude palm oil and some of its derivatives in May, and more recently decided to scrap its palm oil export levy until end-August.

Impacts

High prices for cooking oil and chicken will remain a concern in the region in the weeks ahead.

Malaysia will likely lift all restrictions on poultry exports once domestic prices for the commodity stabilise.

Both Malaysia and Indonesia will be under pressure to ensure sustainable palm oil production.

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