It says if the threat materialises, India will have to source its palm oil from Indonesia and would have to accept whatever price it sets.
As exports slump, the republic’s official projection is only at 0% to 1% this year.
They say unsubstantiated claims published in the media harm business interests of both importers and exporters by creating uncertainty in decision-making and the supply chain.
Impact of ban on exports, caused by longer rains, felt across the continent.
Escalated tension bodes ill for economies already struggling amid weak global demand.
Saturday’s measures come on top of steps last month to boost vehicle purchases, attract foreign funds and ease foreign investment rules.
The primary industries minister says there is room for palm oil exports to expand as Vietnam's economy grows and standards of living improve.
This follows the better-than-expected export growth in July and a 97.2% growth in approved foreign investment in the first half of this year
Indian buyers had already started to reduce purchases last week after India raised its tax on palm oil imports from Malaysia.
Export of rubber products accounted for 2.4% of Malaysia's total exports.
Under an agreement, New Delhi has been charging lower import tax on refined palm oil from Malaysia, giving Kuala Lumpur an edge over Jakarta.
The city state’s economic data has taken a turn for the worse recently after showing relative resilience earlier this year.
Sales to the US, China, EU and India all up in the first half of the year, says deputy minister.
The forecast comes after the European Commission proposed duties ranging from 8% to 18% on imports of biodiesel from Indonesia.
The economic downturn in the second quarter has prompted analysts to downgrade growth forecasts for this year and predict a possible recession.
The healthier estimated export growth of 4% in May is partly due to the frontloading of shipments ahead of the Hari Raya festive holidays in June.
Last year, nearly RM8 billion in wooden furniture were exported.
President Donald Trump's decision to strip New Delhi of its preferential trade status earlier this month appears to have triggered the latest Indian move.
The former finance minister takes a swipe at his successor for claiming the positive export growth is an early sign of a robust second-quarter GDP growth.
This is expected to benefit durian farms, especially those growing the popular Musang King variety.
The commodities-driven economy has been faced with widening trade deficits and rocky global demand for export drivers like palm oil and coal.
Exports in March this year grew by 26.2% while total trade surged 25.9%, says Miti.
The government will also explore markets in Russia and Iran, says Primary Industries Minister Teresa Kok
The city state’s critical electronics sector has contracted for 15 of the past 16 months.