Brighter outlook likely for Wilmar International in 2H25
PETALING JAYA: CIMB Research expects crude palm oil (CPO) prices to hold steady, supported by Indonesia's biodiesel policy and limited production growth.
The research house shared that Wilmar International Ltd has guided for a favourable plantation outlook in the second half of financial year 2025 (2H25), underpinned by firm CPO prices, steady fresh fruit bunches (FFB) growth, and stable crushing margins.
However, CIMB Research said during Wilmar's second quarter of financial year 2025 results briefing, the planter pointed out that refining margins in Malaysia and Indonesia are expected to remain challenging.
'Wilmar maintained that the plantation business should remain favourable in 2H25, underpinned by steady CPO prices, FFB output growth (5%), and limited impact from dry weather (no fires reported at its estates),' it added.
The research house said refining margins remain challenging, particularly in Malaysia and Indonesia, with profits expected to be modest and dependent on raw material availability, demand trends, and market timing.
The research house believed the 19% US import tariff on Malaysian and Indonesian palm oil is expected to have minimal direct impact.
This is because the United States accounts for 2% to 3% of Wilmar's palm oil export volumes, and volumes can be diverted to India, Africa, or other markets.
It said production growth in Indonesia for 2025 is now expected at about 5% year-on-year, slightly below earlier expectations.
CIMB Research believed regulatory risks in Indonesia remain, including a pending Supreme Court decision on the CPO export permit case, an ongoing rice quality investigation, and unresolved forestry land compliance issues.
'The group expects minimal impact from the higher US import tariff on Malaysia and Indonesia and believes Indonesia's B50 biodiesel mandate is achievable,' it added.
Furthermore, the research house said Wilmar expects Indonesia's B50 biodiesel mandate to be implementable if the government proceeds with the policy mandate.
Meanwhile, consumer sentiment in China has improved in recent months, although recovery is expected to be gradual; downtrading persists in some categories.
'Expansion of the central kitchen business in China continues, albeit at a slower pace to refine the model and improve efficiency,' it noted.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
3 hours ago
- Free Malaysia Today
Civil servants to get rewards for earning a degree
About 30,000 members of the public services attended a gathering with the prime minister, at which several incentives were announced. (Bernama pic) PUTRAJAYA : Prime Minister Anwar Ibrahim announced several new initiatives today to strengthen the civil service, including improvements to the service scheme of the Malaysian armed forces, financial incentives under the academic recognition awards and allocations to strengthen Intan, the national institute of public administration. He said the measures are in line with the government's commitment to improving the efficiency, professionalism, and welfare of civil servants at all levels, thereby ensuring that the national development agenda can be implemented more effectively. For the armed forces, a performance-based incentive scheme will be extended to those holding the ranks of sergeant and staff sergeant, with the qualifying period reduced from six years to four years, benefitting 3,789 personnel. Anwar said the government has allocated RM75 million to provide a one-off financial incentive to civil servants who complete higher education at their own expense during their service. The incentive amounts are set at RM1,250 for a doctorate, RM1,000 for a master's degree, RM750 for a bachelor's degree, and RM500 for a diploma or equivalent qualification. In addition, the prime minister said RM3 million has been allocated to strengthen Intan's role as a reference centre for public service excellence. Anwar's announcement was made at a gathering of civil servants today, involving about 30,000 members of the public services who were present in person as well as by virtual attendance. Cuepacs, the federation of public service unions, thanked Anwar for the new incentives, such as the relaxation of haj pilgrimage requirements for civil servants who have not yet been confirmed in their positions. Its president, Adnan Mat, also commended the government for extending the lifelong learning programme until 2026, and the provision of one-off academic recognition rewards ranging from RM500 to RM1,250 for those who have completed their studies independently, without government funding. Commenting on the prime minister's call for civil servants to embrace change or risk falling behind, Adnan said civil servants must be proactive in embracing change. 'If we don't change, we risk being left behind. The old mindset of working in comfort and complacency must be replaced with a culture of continuous transformation,' he said.
The Star
3 hours ago
- The Star
Asean News Headlines at 10pm on Friday (Aug 15, 2025)
Malaysia: * Anwar calls for united front against national security, unity threats, including bullying * Armed Forces BIPs scheme expanded to cover more ranks, says Anwar * Nurul Izzah urges swift, stern action over attack on Rafizi's son * Najib betrayed public's trust, SRC International wants RM42mil back, says counsel * Financial incentives for civil servants pursuing higher education at own expense, says PM * Cops remind participants of Zara solidarity rally in KL to adhere to all instructions * Jakim denies viral video claims, says imported meats comply with Malaysian, Australian standards * Akmal under investigation for posting alleged hate content, say cops * MACC to investigate online media company over smuggling link * Sabah Law Society welcomes AGC decision for Zara Qairina inquest * Man sets woman, self on fire at Simpang Renggam toll plaza * Port Dickson shellfish still not safe to eat, third sampling next week * Steady 2Q25 GDP growth signals domestic resilience, momentum could continue in 2H * Don't take matters into your own hands, AGC urges public over flag issue * Bank Negara maintains 2025 GDP forecast at 4-4.8% amid tariff talks uncertainty * Bursa Malaysia poised for gains after stronger-than-expected GDP growth in 2Q * Ringgit strengthens 5.1% against US$ in 2Q25 - Bank Negara / Robust domestic demand drives 4.4% GDP growth in 2Q High school students hold flowers for a ceremony marking the 80th anniversary of the end of World War II, at the Ereveld Pandu cemetery where Dutch soldiers who died in the war are buried in Bandung, West Java, on Friday, August 15, 2025. -- Photo by TImur Matahari / AFP Singapore: * Pesona Anggerik at Gardens by the Bay marks 60 years of Malaysia-Singapore ties * Ong Beng Seng fined S$30,000 for abetting former Singapore minister Iswaran in obstructing course of justice * Sun Haiyan, ex-China ambassador to Singapore, detained for questioning: Sources * Trio accused of offences including maid abuse walk free after charges compounded * Singapore Tourism Board and top entertainment company Blast sign multi-year deal to host premier esports arena events * No service on Singapore's Sengkang-Punggol LRT line due to power fault * Singaporean actress Rebecca Lim says husband brought her peace, security she's never had * JPJ seizes four Singapore-registered vehicles for illegal e-hailing in Johor Indonesia: * Indonesia's 2026 budget is designed to make the country strong, President Prabowo says * More than 360 hit by food poisoning after eating free school meal in Central Java * Indonesian roof tilers flex muscles to keep local industry alive * Indonesia to crack down on illegal exploitation of resources, president says * Craft exporters from Yogyakarta's special region target Europe after US tariffs * Military takes lead on food security - nation has set up 100 army battalions to help with agriculture projects KUALA LUMPUR, Friday, Aug 15: Chairman of the Institute of Strategic and International Studies (ISIS) Malaysia, Datuk Prof Dr Mohd Faiz Abdullah, and Thailand's Ambassador to Malaysia, Lada Phumas (left), shake hands during the Thailand-Malaysia Strategic Dialogue at ISIS Malaysia today. -- Photo: Bernama Thailand: * Malaysia's role in Thai-Cambodia border talks show depth of bilateral trust, says Thai Ambassador * Malaysian tourists with burn injuries in Bangkok face long recovery and mounting expenses * Thai princess reported to suffer from 'severe' blood infection * Thailand reaffirms treaty pledge, urges Cambodia to stop using mines * Body of Thai soldier who shot two civilians in Surin found; Combat stress cited as possible factor * Thai soldier flees Surin camp, shoots civilians in Kap Choeng; two injured Philippines: * China accuses Philippine vessels of 'dangerous manoeuvres' after its own ships collided * Australian and Philippine forces launch largest military exercises near disputed South China Sea * Collision between Chinese ships expected to escalate tension in South China Sea * Online cockfighting thrives in Philippines despite ban and murders * Filipino seafarer loses job over video of him and wife kissing three-year-old son Farmers carry sun-dried bags of rice in Los Palacios, Pinar del Rio province, Cuba, on May 29, 2025. The Cuban government gave land to a private Vietnamese company for rice production in the face of the lack of local productive varieties and inputs to address the lack of this cereal on the island. The national average rice yield is 1.6 tons per hectare, and the first fields harvested within this plan had a yield exceeding six tons per hectare. -- Photo by Adalberto ROQUE / AFP Vietnam: * Plastic pollution treaty talks in Geneva end without an agreement * Action getting fast and furious as the Asean women's football championships fiesta in Vietnam moves into the knock-out rounds * VinFast to spin off assets in US$1.5bil deal with founder * Heavy rain, flash flood risks across 13 Vietnam provinces; strong winds at sea * Pioneering heart, lung transplant marks medical milestone in Vietnam Myanmar: * Chinese and Asean experts gather to explore the region's digital future * Foreign ministers of China, Laos, Myanmar, Thailand hold informal meeting in Kunming * Desperate Myanmar villagers scavenge for food as hunger bites * World's first humanoid robot games begin in China Philippine Foreign Secretary Theresa Lazaro, (centre) after attending a trade and investment conference at a hotel in Pasay, Philippines. -- AP Photo/Aaron Favila Cambodia: * China urges Cambodia and Thailand to restore peace at the border * Malaysia-led observer team checks on security along Thai-Cambodian border * Durian diplomacy: China welcomes Cambodia's first direct air shipments of fruit * Cambodia welcomes Chinese support for mine clearance in border areas Laos: * Vietnam willing to share experience in state-owned enterprises reform with Laos * China, Lao FMs meet in Beijing, pledge stronger ties * Laos, Philippines agree to enhance ties as they mark 70 years of relations Brunei: * Brunei expo unveils future of technology * Brunei economy maintains recovery amid global uncertainty Assam Police dog squads take part in a parade during the country's Independence Day celebrations in Guwahati, Friday, Aug. 15, 2025. -AP Photo/Anupam Nath AseanPlus: * Rajnikanth is back with a bang with 'Coolie' and hand it to the superstar to lift the Tamil movie-world out of its doldrums * Almost 100 Bangladeshis denied entry at KLIA, says border control agency * KLIA Aerotrain to close overnight for two weeks starting Aug 18 to optimise system * Malaysia: Local actor Parvin Nair Surendran, 33, killed in highway crash, family seeks dashcam footage * 72YO retired Malaysian engineer repairs toys and gives them back to charity * Warships make their way into Penang for Asean multilateral naval exercise * Kuala Lumpur to host regional underground construction gathering * Foreigners in JB charged with supporting terrorist group * Justin Trudeau among prominent speakers at sustainability forum in Kuching * Leo XIV calls for worldwide peace on his 100th day as pope * Chinese military 'warns off' US destroyer from vicinity of Scarborough Shoal * Local actress Anna Jobling expresses gratitude to mum on 25th birthday amid ongoing conflict * Anna Jobling's mother claims she was being treated 'like a stray dog', upset after receiving injunction order * A rickshaw driver and his dog are winning hearts in Nepal's Kathmandu * Japan posts unexpectedly strong GDP, helped by resilient exports * China's July factory output, retail sales growth slump in blow to economic momentum * China rolls out new visa type to draw young science and tech talent * Japan minister joins crowds at controversial shrine to mark 80 years since world war defeat * Chinese man spends US$120,000 on 300-year gym membership, then owner vanishes * Shaolin's 'CEO monk' scandal may prompt overhaul of how temples are run in China * Trio arrested for allegedly stealing HK$1 million from Hong Kong pet company * South Korea's Lee to end some military activity on border with North Korea * Gen Z women embrace an ancient code written for them * On India's Independence Day, Modi vows to punish Pakistan for future attacks * Indian rescuers scour debris after 60 killed in flood, scores of people are also missing * Tropical storm disrupts travel, courts and schools in China * Citing China's 'significant steps', Trump extends US tariff truce * Japan's PM Ishiba mentions wartime 'regret', toeing right-wing line * Why are there more fights on Hong Kong flights? Conditions, social media blamed * Kim's sister denies propaganda loudspeaker removal, rebuffs South overtures * 80 years on from WWII, China's interests lie in a peaceful Asia-Pacific: Mitter * Zebra stripes, polka dots: The youthful spirit of Copenhagen Fashion Week * Athletics - Fresh off another world record, Duplantis ready to push boundaries again * Olympics - LA28 to allow venue naming rights in first for Olympics; Comcast, Honda debut deals * Badminton - New challenges await Pearly-Thinaah in quest for historic podium spot
The Star
4 hours ago
- The Star
Indonesia's 2026 budget is designed to make the country strong, President Prabowo says
Indonesian President Prabowo Subianto said efficiency measures would be needed to reduce the country's budget deficit. -- PHOTO: REUTERS JAKARTA (Reuters): Indonesia's President Prabowo Subianto on Friday (Aug 15) said his budget for 2026 would be designed to ensure the South-East Asian country was strong, independent and prosperous, as he delivered his first speech on fiscal policy to Parliament. The budget proposal is the first developed by Prabowo's administration after he took office in October 2024. The 2025 budget was prepared by his predecessor, Joko Widodo. Prabowo has pledged to lift spending as he seeks to raise economic growth to 8 per cent during his five-year term and deliver on his campaign platform of improving welfare and achieving food and energy self-sufficiency. In his address, Prabowo said the 2026 budget deficit was seen at 2.48 per cent of gross domestic product. He said efficiency measures would need to be taken to reduce the gap and vowed to have no deficit by 2027 or 2028. For 2026, he proposed to spend 335 trillion rupiah (S$26.3 billion) on his flagship programme to deliver free meals to 82.9 million students, children and pregnant women. Prabowo allotted 171 trillion rupiah for the free meals programme this year, which he said has reached about 20 million recipients. He also promised budgetary support to decarbonise Indonesia's electricity, saying he wanted the country to use 100 per cent renewable power sources in the next ten years or earlier. Indonesia currently relies on coal for over half of its power generation. In his address, Prabowo, a former defence minister and special forces commander, also said Indonesia must modernise its military hardware, adding his country had rare earths deposits that were vital to modern defence. -- REUTERS
