IPOH, June 27 (Bernama) -- Consumer products-based Yee Lee Corporation Bhdis looking for bigger export markets, especially in Thailand and itsMekong River Delta neighbours, once the Asean Free Trade Area (Afta) comesinto effect next year.Deputy chairman and managing director Lim A Heng said the company washoping that Thailand would liberalise its import duty on palm oil productsnext year.

"Their import duty is very high because they (the Thais) want to protecttheir soya oil industry. So, we feel Afta will benefit us rather than be athreat as our prices are (relatively) low," he said after the company'sannual general meeting here Thursday.

At present, 40 percent of Yee Lee's products are exported. Most areexported to China, Pakistan, India, Russia, West Asia and the Pacificislands. Locally, Yee Lee has one third of the cooking oil market.

Lim said more efforts would be taken to penetrate new markets as Malaysiaproduced about 10.5 million tonnes of palm oil annually and only aboutfive percent was consumed locally.

"If we can go into Thailand, then it will be easier to get into Cambodia,Laos, China and Myanmar, which have a population of almost 200 million(when) combined...this is a very big market," he said.

For the financial year ended Dec 31, 2001, the company recorded a revenueof RM230.46 million and profit attributable to shareholders totalledRM6.41 million as compared to a revenue of RM253.89 million and anattributable profit of RM6.49 million in the previous year.

Lim said increased palm oil prices, which now stood at around RM1,400 pertonne, had affected its performance as the company could not adjust itscooking oil prices overnight.

"We cannot increase prices for products sold locally but we can do thatfor those exported. That is also why we are buying more land with oilpalms," he explained.

Lim attributed the lower revenue last year to its tea plantationoperations in Sabah.

"We are a new brand and there are already big players in the local market.Due to keen competition, we incured losses and this reduced our profit,"he said.

But he said Yee Lee was hoping for a satisfactory performance in thecurrent year and had taken several measures to achieve it, includingstrengthening its trading arm, Yee Lee Trading Co. Sdn Bhd, which recordeda revenue of RM149.37 million.

Yee Lee Trading has also been appointed by Hua Hong Export Import Sdn Bhdas the sole agent for the entire Malaysian market to sell and distribute afamous Chinese tea blend under the brand name of "Tork Shou Heong"produced by Hua Hong. "Tork Shou Heong" is the only branded Chinese tea.

With its experience and distribution network, Lim said Yee Lee Trading wasconfident of selling RM6 million worth of "Tork Shou Heong" this year.

-- BERNAMA

(The informations and opinions expressed in this article represent theviews of the author only. They should not be seen as necessarilyreflecting the views of Palm News)