KUALA LUMPUR, Aug 11 (Bernama) -- Malaysia is confident that the currenthigh prices of commodities like rubber and oil palm can be sustainedfollowing the establishment of a mechanism for cooperation among majorproducing countries.Primary Industries Minister Datuk Seri Dr Lim Keng Yaik said with thecooperation forged between Malaysia, Indonesia and Thailand, the supply ofthe commodities in the world market could be controlled to prevent a glutwhich would bring down prices.

The agreement signed by Malaysia, Indonesia and Thailand in Bali recentlyto set up a consortium to control rubber price was the best mechanism toregulate its price in the world market, he told reporters after openingthe Selangor Gerakan delegates conference here Sunday.

He said the consortium, known as the International Tripartite RubberOrganisation, would serve to market rubber in the world market apart fromcreating a stockpile if necessary.

"This will benefit some 10 million smallholders in the three countrieswhich produce 70 percent of the world's rubber," Dr Lim said.

Dr Lim said the consortium was formed following the Bali Agreement on Dec31, 2001 with an initial agreed capital of US$225 million (RM855 million).-- BERNAMA