11/10/2010 (Straits Times), Kuala Lumpur - MALAYSIA said on Monday its palm oil exports will jump 32 per cent to 65.2 billion ringgit (S$27.4 billion) this year as prices and volume rise on the back of the economic recovery.

Plantation Industries and Commodities Minister Bernard Dompok said that in the first eight months of the year, palm oil exports rose 4.3 per cent to 13.38 million tonnes compared with the same period a year ago, a report said.

'The palm oil industry's rapid advancement has contributed towards the country's economic development and prosperity through growth in output and exports, supported by competitive market prices,' he said, according to state media.

Palm oil production has been been fairly steady this year, so the growth in export value will come from higher prices, an analyst said.

'As the economies improve then there should be improved demand for refined palm oil for oleochemicals (those derived from plant fats), specialty fats and so on,' the analyst told AFP.

Palm oil, which is used extensively across the globe for biofuel, processed food and toiletries, is a key export for Malaysia which is the world's number-two palm oil producer after Indonesia.