Malaysian palm oil promotion seeks to increase demand in AfricaKuala Lumpur, (Business Times) 6/20/2001-The east African nation ofDjibouti is set to become the latest signatory of the Palm Oil CreditPayment Arrangement (POCPA) scheme, with the republic expected to sign theagreement with Malaysia within this year. Its ambassador to Malaysia,Japan, South Korea and Singapore Rachad Farah said Djibouti is seeking aUS$5 million (US$1 = RM3.80) loan to buy palm oil from Malaysia under thescheme."We will be submitting the proposal to the Primary Industries Ministry,with certain amendments to suit to our needs. We have finalised theamendments to the proposal," he told Business Times in an interview inKuala Lumpur. Rachad, who is based in Tokyo, was on a one-week visit toMalaysia since June 11.Rachad said he will submit the proposal to the Primary Industries Ministrysoon. "They (Primary Industries Ministry) have agreed in principle to getto us within a month after the proposal was presented and approved by theMalaysian Government," he said.As a follow-up to this, he said the Djibouti Central Bank will send adelegation to Malaysia to sign the POCPA agreement once the MalaysianCabinet gives the approval for Djibouti to secure the loan. "This is justthe beginning.We may request for additional loan under POCPA. . . . it may be anotherUS$5 million or US$10 million, depending on the need. We will also try topromote the use of palm oil to neighbouring countries such as Ethiopia,Eriteria, Somalia and Sudan which currently consume soya oil imported fromthe US," he said.A former French territory of 22,000 sq km in area, Djibouti has apopulation of about 860,000 people.Introduced by Malaysia several years ago, POCPA is a form of bilateralpayment arrangement to promote counter trade of palm oil between signatorycountries. The scheme is also aimed at promoting research and developmentof palm oil among research organisations of signatory countries and alsoto revive an industry faced with weakening demand for the past few years.Malaysia has roped in Algeria, Sudan, Pakistan, Iraq, Iran, Myanmar,Bosnia Herzegovina and Cuba under the scheme.Besides palm oil, Rachad said Djibouti also plans to import some 300Proton cars to be converted into taxis, as part of its efforts to improvethe transportation system in that country. Rachad met Proton officials inShah Alam yesterday."Our discussion was a fruitful one and Proton has agreed in principle todeliver the 300 Proton cars for our public transport purposes, similar tothe one used by Malaysian cabbies in the Klang Valley, he said yesterday.He said if there is great demand for Proton cars, including for individualpurposes, Djibouti will not hesitate to import more of the national cars.While other imported cars are being taxed at 35 per cent, Rachad saidDjibouti will not impose tax on the Proton cars."In the spirit of Muslim brotherhood, we are giving preference to Protonto export its cars to Djibouti tax-free," he said.