MPOB calls for setting up of oil hub or redistribution centre in Egypt
24/06/2024 (OFI Magazine) - The Malaysian Palm Oil Board (MPOB) has called for an oil hub or redistribution centre to be set up in Egypt to build on recent cooperation between the two countries, the New Straits Times reported.
MPOB director general Dr Ahmad Parveez Ghulam Kadir was quoted as saying the initiative had mutual benefits and was in line with the countries’ aim to cooperate in investments within the agro-commodities sectors and bulking facilities.
“By leveraging Egypt’s strategic position and ability to re-export to neighbouring countries, Malaysia can consider establishing a hub for Malaysian palm-based downstream products at one of Egypt’s major ports,” Dr Kadir told Business Times.
The proposed hub in Egypt would serve as a vital link in the distribution chain, ensuring timely delivery of palm oil products to markets in the Middle East and North Africa, the 6 June report said.
“This can also encourage small quantity imports by Egyptian industry members directly from Malaysian exporters, thus eliminating the additional cost of dealing with a third party,” Dr Kadir added.
In addition, he said Malaysia could establish its distribution hub in the Suez Canal Economic Zone (SCZONE), to provide facilities to boost the market presence of Malaysian palm-based products in the region.
For this reason, he said the Malaysian oil palm industry could consider investing in bulking facilities in Egypt to gain market share in this region.
"Egypt, with its unique geography, has high potential to be an economic and industrial hub, linking Europe, the Middle East and Africa – a unique trade triangle connected to the world via the Suez Canal,” he said.