19/04/2024 (Free Malaysia Today), Petaling Jaya - Demand for palm products is projected to advance due to better economic conditions in 2024, said Genting Plantations Bhd chairman Zahidi Zainuddin.

He said it will continue to be supported by the price competitiveness of crude palm oil (CPO) against other vegetable oils.

“Palm oil prices are expected to be well supported at current levels in 2024 due to the seasonally low output cycle during the first half as well as overall supply constraints.

“Additionally, Indonesia is increasing its local consumption of palm oil for both the food and biodiesel industries,” he said in Genting Plantations 2023 integrated annual report.

He said palm oil is expected to be used in increasing quantities as global population and affluence levels continue to rise, further augmented by its versatility which lends itself to an expanding variety of food and non-food applications.

“As the most efficient oil-bearing crop on earth, palm oil will be depended upon to meet the world’s growing food and energy needs in light of the lack of arable land and to address food security,” he added.

In 2023, the group’s average CPO price was 15% lower at RM3,483 per metric tonne (mt) versus RM4,100 per mt in 2022.

Similarly, the average palm kernel price decreased by 33% to RM1,875 per mt from RM2,784 per mt in the previous year.

Looking ahead to 2024, he said the group’s performance will be closely linked to the direction of palm product prices, which are influenced by a host of external factors, including the global economic outlook.

On another note, he said the upcoming Johor-Singapore Special Economic Zone and the Johor Bahru–Singapore Rapid Transit System, slated for completion by end-2026 augur well for the Johor property market.

“It has presented viable opportunities for the group’s property division to further unlock the value of its landbank via planned development activities,” he said.

At the close of trading, Genting Plantations’ share price was down by nine sen or 1.49% at RM5.96, giving it a market capitalisation of RM5.35 billion.

https://www.freemalaysiatoday.com/category/business/2024/04/19/demand-for-palm-products-to-advance/