KUALA LUMPUR, Feb 23 (Bernama) -- Export earnings of most commodities andcommodities-based products with the exception of pepper and tobacco for2005 are expected to stay with the opening of newly planted areas in Sabahand Sarawak and increased downstream products, said a minister.

The export earnings of most commodities and commodities-based productswith the exception of pepper and tobacco, had increased by 13.6 percentfrom RM55.26 billion in 2003 to RM62.77 billion in 2004.

Minister of Plantation Industries and Commodities Malaysia, Datuk PeterChin said increased downstream products such as palm diesel/bio-dieselwould generate better income for the industry.

"A Bio-diesel Act will be introduced to encourage petroleum chemicalcompanies to blend diesel with palm oil to a maximum of five percent ofpalm oil," he said at a press conference to announce the performance ofthe commodities sector in 2003 and 2004 here Wednesday.

Palm diesel or bio-diesel is found to be more environmental friendly thatwill help in reducing pollution.

"To further boost income for the palm oil industry, we are targetting atotal planted area of 1.5 million hectares in Sabah from total plantedarea of 1.14 million hectares currently and a targetted planted area ofone million for Sarawak from 486 million hectares," Chin said.

Major export destinations for commodities and commodities-based productsin 2004 included China, EU, US, Japan, India, Korea and Asean countries.

-- BERNAMA