KOTA KINABALU, Sept 27 (Bernama) -- Sabah chief minister Datuk Chong KahKiat said the potential for downstream processing of palm oil in Sabah istremendous as the state accounts for only two percent of such activity inthe country's palm oil industry.Downstream activities in Sabah are confined to only basic refining andfrationisation, he said when launching the Malaysian Palm OilAssociation's (MPOA) Sabah branch in Sandakan todayChong also said there are no tertiary processing activities in the statecompared with the level of activities in Peninsula Malaysia in both theedible and non-edible areas."And the production of consumer products in Sabah is confined only tocooking oil," he said.Chong said there are also opportunities in producing various grades ofpalm-based margarine, shortening for butter, confectionery fats, creamers,emulsifiers, pharmaceuticals and vitamin E & B.According to estimates by IOI Edible Oil Sdn Bhd, Sabah's plantationsector is capable of producing some 10 million tonnes of biomass per yearbased on the state's current planted hectarage of one million hectares.Chong also said Sabah has overtaken Johor in terms of the largest plantedarea with oil palms at 29.64 percent of the country's total planted areaof 3.38 million hectares.Sabah's production of 3.11 million tonnes of palm oil last year accountedfor 28.69 percent of the nation's total output of 10.84 million tonnes.Chong, who is also Sabah's tourism, environment, science and technologyminister, also reminded the state's plantation industry to give toppriority to the protection and conservation of the environment in theirpursuit for development.