MARKET DEVELOPMENT
B10 Biodiesel Programme To Contribute More To GDP
B10 Biodiesel Programme To Contribute More To GDP
29/01/2016 (Bernama) - The implementation of B10 biodiesel programme using crude palm oil (CPO) by April this year is expected to increase its contribution to the country's economic growth, said Deputy President of Malaysian Biodiesel Association, U.R Unnithan.
With higher consumption of palm biodiesel under the B10 programme at 1.2 million tonnes a year, it was anticipated to help reduce palm oil stock by 600,000 tonnes annually and increased CPO price by about RM680 per tonne, he said.
"The potential impact on gross domestic product (GDP) by B10 would be RM13.6 billion on account of CPO price alone," he said, adding this would be about 25 per cent higher compared with the impact by the current B7 programme.
"We feel the B10 programme is a right step towards increasing its contribution to Malaysia's GDP," he told a press conference on the biodiesel implementation programme in Malaysia here, Thursday.
Asked if the B10 programme would help the government to achieve the revised 2016 GDP target of 4.0 per cent to 4.5 per cent, Unnithan said, "That is for sure. It will contribute (to GDP projection) for sure as palm oil sector is very important to Malaysia as the country produces 20 million tonnes of palm oil a year, and its price has a significant impact on the GDP," he said.
The government had earlier planned to carry out the B10 biodiesel programme in October last year. However, Unnithan was confident that it could be implemented in April this year as the move was agreed by all stakeholders.
On the Trans-Pacific Partnership Agreement (TPPA), he described Malaysia's participation in the trade pact as a very good move as it would provide a greater market access to the country.
"It is a big advantage for us as it is a government to government agreement which will overcome the issue of tariff and non-tariff barriers," he said.
Unnithan has refuted the assumption that Malaysia's participation in the TPPA would allow foreign companies to export their biodiesel to the country.
"The B5, B7 and B10 programmes are definitely meant for usage of Malaysian biodiesel...the import of foreign biodiesel for use in local national mandate porgramme is not allowed," he said.
However, he did not deny that competition would occur if the foreign companies set up their own biodiesel plants in the country.
With higher consumption of palm biodiesel under the B10 programme at 1.2 million tonnes a year, it was anticipated to help reduce palm oil stock by 600,000 tonnes annually and increased CPO price by about RM680 per tonne, he said.
"The potential impact on gross domestic product (GDP) by B10 would be RM13.6 billion on account of CPO price alone," he said, adding this would be about 25 per cent higher compared with the impact by the current B7 programme.
"We feel the B10 programme is a right step towards increasing its contribution to Malaysia's GDP," he told a press conference on the biodiesel implementation programme in Malaysia here, Thursday.
Asked if the B10 programme would help the government to achieve the revised 2016 GDP target of 4.0 per cent to 4.5 per cent, Unnithan said, "That is for sure. It will contribute (to GDP projection) for sure as palm oil sector is very important to Malaysia as the country produces 20 million tonnes of palm oil a year, and its price has a significant impact on the GDP," he said.
The government had earlier planned to carry out the B10 biodiesel programme in October last year. However, Unnithan was confident that it could be implemented in April this year as the move was agreed by all stakeholders.
On the Trans-Pacific Partnership Agreement (TPPA), he described Malaysia's participation in the trade pact as a very good move as it would provide a greater market access to the country.
"It is a big advantage for us as it is a government to government agreement which will overcome the issue of tariff and non-tariff barriers," he said.
Unnithan has refuted the assumption that Malaysia's participation in the TPPA would allow foreign companies to export their biodiesel to the country.
"The B5, B7 and B10 programmes are definitely meant for usage of Malaysian biodiesel...the import of foreign biodiesel for use in local national mandate porgramme is not allowed," he said.
However, he did not deny that competition would occur if the foreign companies set up their own biodiesel plants in the country.