28/3/06 KUALA LUMPUR ( The Star) - Golden Hope Plantations Bhd (GHope) suggests more incentives be introduced to develop the biodiesel industry under the Ninth Malaysia Plan (9MP).

Group chief executive Datuk Sabri Ahmad said the Government should offer initial support to companies venturing into the biodiesel industry.

“If the Government extended the tax credit incentives to us to get the project moving, that will be enough,” he told reporters after an EGM yesterday.

e also said more research should be conducted on the aspects of biodiesel development and how to make the product more efficient to compete in the world market.

“The Government must provide support like in Germany and Europe to develop the export aspect of this industry,” he said.

Sabri said the biomass industry should also be explored as palm oil as a raw material for biodiesel was cheaper by about US$250 per tonne compared with rapeseed oil.

“We have better margins in terms of competitiveness,” he said.

Over the longer term of five to 10 years, more research was needed on converting biomass from palm oil into biodiesel, he added.

He also said GHope supported the National Agriculture Policy, which is embedded in the 9MP.

On the EGM, he said GHope’s shareholders had revoked an earlier acceptance of a voluntary general offer by Island & Peninsular Bhd (I&P) to acquire 44.16 million shares in Negara Properties (M) Bhd.

He said GHope would be reviewing the way forward for Negara with other major shareholders, including Permodalan Nasional Bhd, to determine the best option for the company and how best to enhance its value for shareholders.

“We have to be focused on plantations, the full value chain of the plantation industry, but we can’t tell at this stage on the way forward for Negara. We have to get back to the drawing board,” he said.

But, he said, GHP would continue to assist Negara should the need arise as the latter had “plenty of land” within the Klang Valley.

“However, we will not go into property; any property business will be channelled to Negara,” he added.