MARKET DEVELOPMENT
Decline in CPO Price Not Unique to Sabah: Tan
Decline in CPO Price Not Unique to Sabah: Tan
12/11/2014 (Daily Express) - The decline in crude palm oil (CPO) price is not unique to Sabah as Malaysia and the world market also suffer the same predicament.
"However, the price of CPO from January to September this year had increased to RM2,441 per tonne compared to RM2,323.50 per tonne during the same period last year," said Industrial Development Minister Datuk Raymond Tan during the question and answer session at the State Assembly sitting, here, Tuesday.
Tan said the price of CPO is influenced by several factors including the correlation between demand and supply, the decline of other vegetable oil price such as soya bean oil and rapeseed oil and the economic downturn in some countries which led to decreased demand due to the weak purchasing power.
Replying to a question by Klias Assemblyman Datuk Lajim Ukin, Tan said the Government is working hard to ensure the price of the commodity remains high and that several steps have been taken to strengthen and increase the competitiveness of the industry.
"To enhance the use of palm oil in the domestic market, the Government has agreed to extend and enhance its use as biodiesel blends of B5 (5 per cent palm biodiesel in diesel blends) to B7 (7 per cent palm biodiesel in diesel blends) by 2015.
"The B5 programme was fully implemented in the peninsula in March this year and will be extended to Sabah and Sarawak in phases since September. The B7 is expected to increase the use of palm oil by 700,000 tonnes per year," he said.
The State Government, he added, had taken a proactive step towards advancing the palm oil industry in the State with the establishment of the Palm Oil Industrial Cluster (POIC) in Lahad Datu and Sandakan.
"We are expecting and targeting more than half of the 5.5 million metric tonne CPO supply a year in Sabah to be developed towards the production of various derivatives.
"This means, we must increase the use of CPO in Sabah by encouraging its use in local industries such as in POIC," he said.
To date, Tan added, POIC Lahad Datu had received proposals from investors who are interested in developing palm oil downstream industry with total investment value of RM3.6 billion.
An Integrated Bio-Refinery Complex will also be built by Genting Plantation Berhad with an estimated investment value of RM1.7billion in POIC.
"With the development of POIC Lahad Datu, it is expected that it would be able to provide alternative revenue to Sabah's economy," he said, adding that these efforts were done to ensure that Sabah would not rely completely to the exports of CPO.
"However, the price of CPO from January to September this year had increased to RM2,441 per tonne compared to RM2,323.50 per tonne during the same period last year," said Industrial Development Minister Datuk Raymond Tan during the question and answer session at the State Assembly sitting, here, Tuesday.
Tan said the price of CPO is influenced by several factors including the correlation between demand and supply, the decline of other vegetable oil price such as soya bean oil and rapeseed oil and the economic downturn in some countries which led to decreased demand due to the weak purchasing power.
Replying to a question by Klias Assemblyman Datuk Lajim Ukin, Tan said the Government is working hard to ensure the price of the commodity remains high and that several steps have been taken to strengthen and increase the competitiveness of the industry.
"To enhance the use of palm oil in the domestic market, the Government has agreed to extend and enhance its use as biodiesel blends of B5 (5 per cent palm biodiesel in diesel blends) to B7 (7 per cent palm biodiesel in diesel blends) by 2015.
"The B5 programme was fully implemented in the peninsula in March this year and will be extended to Sabah and Sarawak in phases since September. The B7 is expected to increase the use of palm oil by 700,000 tonnes per year," he said.
The State Government, he added, had taken a proactive step towards advancing the palm oil industry in the State with the establishment of the Palm Oil Industrial Cluster (POIC) in Lahad Datu and Sandakan.
"We are expecting and targeting more than half of the 5.5 million metric tonne CPO supply a year in Sabah to be developed towards the production of various derivatives.
"This means, we must increase the use of CPO in Sabah by encouraging its use in local industries such as in POIC," he said.
To date, Tan added, POIC Lahad Datu had received proposals from investors who are interested in developing palm oil downstream industry with total investment value of RM3.6 billion.
An Integrated Bio-Refinery Complex will also be built by Genting Plantation Berhad with an estimated investment value of RM1.7billion in POIC.
"With the development of POIC Lahad Datu, it is expected that it would be able to provide alternative revenue to Sabah's economy," he said, adding that these efforts were done to ensure that Sabah would not rely completely to the exports of CPO.