Malaysia's palm oil market expected to rebound - Khairuddin

Plantation Industries and Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali said the ministry is confident that the country's current palm oil supply is sufficient to meet the external demand.

"There has been an increase in demand (for palm oil) from several countries such India and Middle Eastern countries, including Turkey, due to the 100 per cent export duty exemption which is in force up to December this year.

"Currently, our CPO supply is less than one million tonnes, but we are confident that this is sufficient," he said to reporters after his meeting with Kedah Menteri Besar Muhammad Sanusi Md Nor here today.

The tax exemption was one of the measures under the Economic Recovery Plan (PENJANA), aimed at managing the country's stock level and stabilising CPO price.

He added that in an effort to ensure sustainable supplies, the ministry is also encouraging the younger generation to get involved in the oil palm estates as there are still quite a lot of unharvested crops.

Mohd Khairuddin also said that the ministry will be meeting with trade partners from India to discuss on the country's palm oil market in detail.

Meanwhile, Muhammad Sanusi said the Plantation Industries and Commodities Ministry is also planning to develop a community rubber estate and bamboo plantations in degraded areas, as well as expanding the nucleus farm for the production of kenaf seeds to boost the commodities industry in Kedah.

He said the matter was disclosed during the meeting, where the parties had discussed the issues and challenges faced by the country's commodities industry.

Muhammad Sanusi said the community rubber plantation development project is aimed at restructuring and centralising rubber production areas.

"The project's concept is the development of state government-owned land jointly managed by LGM Properties Corporation, a corporation under the Malaysian Rubber Board (MRB) and a state government subsidiary company.

"All of MRB's technology and expertise will be applied so that it will become the best model rubber plantation," he said, adding that each project participant may earn up to RM2,000 per month.

Muhammad Sanusi said the bamboo plantation development project would involve 500-1,000 hectares (ha), to be implemented by state government subsidiary companies under the Malaysian Timber Industry Board's Forest Plantation Development Programme.

"It is capable of generating a net income of RM36,000 per hectare if it is done well," he said.

Meanwhile, Muhammad Sanusi said the nucleus farm for the production of kenaf seeds would be expanded up to 300ha from the current more than 100ha.

He said the implementation of the project through the National Kenaf and Tobacco Board was expected to produce 90,000 kilogrammes of additional seeds, and provide close to 500 jobs for the locals.