• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Dhimant Bhatt

Recently in Kuala Lumpur

MALAYSIA is now not only a major producer of palm oil but it has become a major producer of oleo chemicals. The Malaysian Government is looking at all possibilities to increase demand for palm oil and its products by widening its applications.

"We must produce valued-added products to change our oleo-chemicals into high-end consumer products such as personal care, cosmetics and pharmaceuticals," Mr Y.B. Datuk Peter Chin Fah Kui, Malayasia's Plantation Industries and Commodities Minister, said at a media briefing at the "Oils and Fats International Congress 2004".

"The Government is extending all its support to the domestic industry by way of incentives such as research and development expenditure, technological know-how and benefits of 10 year's tax-holidays," Mr Peter said.

"I strongly believe that the world trade in oils and fats is destined for more tense competition in the futures with the emergence of many new players. Being an export-oriented industry, we must excel in such competitive market environment," he added.

For Malaysian palm oil, 2003 had recorded better prices under tight world supply situation. This had brought in export revenue of more than RM 27 billion to the country, as compared to RM 20 billion in 2002, he said.

The Malaysian Government recently allowed more tax-free exports of crude palm oil (CPO) to trim the increasing stockpile in September.

Last year, the country allowed exports of 13 lakh tonnes CPO, or 10 per cent of its annual production of 13.3 million tonnes.

The tax-free move has taken at the time when palm oil stocks reached the1 million tonne-level.

Currently, the stock is nearly 14 lakh tonnes, considered to be a high level that puts the pressure on palm oil prices. The identities of the companies allowed to export the CPO tax-free have never been revealed but mostly the companies having refineries abroad are granted such permission.

Such companies include Golden Hope Plantations Bhd, Kuala Lumpur Kepong Bhd, IOI Corp Bhd, United Plantations Bhd, Federal Land Development Authority, Sime Darby Bhd, Kwantas Corp Bhd, Pan Century Edible Oils Sdn Bhd and others.

Mr Peter said the "real" prices of all the commodities including palm oil are on a downward trend. CPO prices are currently trading at the RM1,450-1,550 a tonne level.

"Malaysian palm oil board has been in collaboration with local oil giant, Petronas, to develop a patent technology to transform crude palm oil into a viable diesel substitute. However, we are only at the development stage of this technology but research has been going on to maximise the benefits of palm oil," Mr Datuk Haron Siraj, CEO of Malaysian Palm Oil Promotion Council, told Business Line.

More Stories on : Oilseeds & Edible Oil | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
New president for ACE

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line