03 October 2001 (Business Times)

INDUSTRY players in Malaysian palm oil sector are scheduled to meet todayto formulate a strategy to overcome palm oil shipment disruptions toPakistan.Sources said a series of counter-measures will be drawn up by the meetingand will be presented to the Primary Industries Minister Datuk Seri Dr LimKeng Yaik for approval.“However, the measures cannot be revealed until it gets the approval fromthe minister first,” the source told Business Times in Kuala Lumpuryesterday.It is understood that the meeting will include representatives from theMalaysian Palm Oil Board, Malaysian Palm Oil Association, Malaysian PalmOil Promotion Council (MPOPC) and Pakistan High Commission.Others are Palm Oil Refiners Association of Malaysia, the MalaysianInternational Shipping Corp and Suterajaya Shipping Sdn Bhd.Malaysia’s palm oil shipments to Pakistan are currently facing disruptionsdue to shippers’ reluctance to ply the Arabian Sea due to insurancecompanies’ refusal to cover their ships, and possible retaliation of theUS.Pakistan is a traditional buyer of Malaysia’s palm oil; consistentlyconsuming one million tonnes annually or ni9 per cent from last year’s 11million tonnes output. Some 100,000 tonnes of crude pal oil (CPO) isexported to Pakistan each month by about 10 ships.Dr Lim had said on Monday the Government would ensure an even flow of CPOexports to Pakistan be maintained despite the disruption to certainshipping trades.“The Government would find other ways and means to adjust to the currenttension hit situation and would find alternative routes to continueshipping palm oil to Pakistan,” Dr Lim said.He has instructed MPOPC to find ways to solve problems of shipping CPO toPakistan.