17/1/06 CYBERJAYA, (Bernama) -- The Malaysian Business Council and Indonesian Business Council have agreed to collaborate in both upstream and downstream activities of the commodity sector, giving a further boost to the palm oil industry of both countries.

Plantation Industries and Commodities Minister, Datuk Peter Chin Fah Kui, said the two sides have signed a memorandum of understanding (MoU) to work together on commodity activities, including rubber, cocoa and pepper but the emphasis would be on palm oil.

The areas of cooperation would include research and development on plantation and planting material as well as joint marketing strategies, he told reporters after launching the "National Level Malaysian Palm Oil Awareness Campaign for Schools", here Tuesday.

The pact was a result of the recent visit by Prime Minister Datuk Seri Abdullah Ahmad Badawi to Indonesia.

According to the minister, the signing of the MoU was a good sign and a proactive initiative by the private sectors.

"Through such collaboration, I can see it being a very big jump on the part of palm oil industry because together (Indonesia and Malaysia) we control 80 percent of the world's palm oil production," Chin said.

"So this augurs well for the industry and I hoped that what they signed they will practise," he said, adding that it was not easy for the two palm oil giants to work together.

Chin said the positive outcome of the cooperation between the private sectors of both countries was beyond his expectations.

He said with regard to marketing strategies, they should discuss about new markets and how to establish them.

On the awareness campaign by the Malaysian Palm Oil Promotion Council (MPOPC), Chin said it was timely as the ministry encouraged such programmes to ensure a wider acceptance of products made from palm oil among Malaysians, particularly the younger generation.

MPOPC chairman Datuk Lee Oi Hian said the council had allocated RM1 million for the ongoing campaign targeted at students nationwide.

He said the campaign, which was launched in June 2003 with the first plantation visit to the KLK Estate in Sungai Buloh, has received good response from students and teachers. "So far, 12,000 students have visited the estates. Over 90.000 students have attended the lectures and the number is expected to increase annually," he added.

Beginning this year, MPOPC will expand the campaign to other states, including Johor, Pahang, Kelantan, Melaka, Kedah, Perlis and Penang.

-- BERNAMA