MANILA, Oct 5 (Bernama) -- The Philippines is pushing the development ofthe palm oil industry and is ready to offer some 100,000ha of land forprospective Malaysian investors.

In its report, the state-run Southern Philippines Development Authority(SPDA) said the areas suitable for oil palm cultivation were Lanao delNorte, 32,000 ha; Lanao del Sur 10,000ha; Maguindanao 25,000 ha; andSultan Kudarat 45,000 ha.

The agency drew up the list on orders of President Gloria Arroyo to enticeMalaysian oil palm cultivators to expand their operations to the southernPhilippines island of Mindanao.

Arroyo had offered oil palm cultivation to Malaysian businessmen duringher recent official visit to Malaysia to drum up closer trade andinvestment linkages between the two neighbours.

The Philippine Coconut Authority estimates that it will cost about 75,000pesos (RM7,500) to develop one hectare of land into oil palm plantation.

It cites Mindanao region as the most suitable area to grow oil palmbecause of its moderate temperature as well as the evenly distributedrainfall.

In its study, the University of Asia and the Pacific (UAP) favours thefull development of this industry because of the expected increase in thedemand in the next couple of years.--BERNAMA