30/09/05 KUALA LUMPUR, (Bernama) -- Malaysia's palm oil export is expectedto increase 10.5 percent to RM22.707 billion next year on higher volumeand better prices.

The export volume of palm oil, including crude palm oil, processed palmoil and stearin, is forecast to increase 6.9 percent to 14.64 milliontonnes, the Treasury said in its Economic Report 2005/2006 released hereFriday.

Export value per tonne is forecast to increase 3.4 percent to RM1,551while the value of export is estimated to increase 2.5 percent to RM20.55billion on higher demand and also a sustained average export price ofRM1,500 per tonne.

The export volume is expected to increase 17.7 percent to 13.7 milliontonnes, but the price decline by 12.9 percent to RM1,500 per tonne.

Primary commodities export, including palm oil, is forecast to grow 13percent to RM91.038 billion next year.

Overall, exports of primary commodities would grow by 11.6 percent toRM80.575 billion this year (2004: 20.2 percent to RM72.2 billion), withhigher export receipts of palm oil, crude oil and liquefied natural gas.

Exports of agriculture commodities is expected to grow 1.7 percent toRM32.962 billion this year due to firmer prices in the second half, whilemining sector to grow 19.7 percent to RM47.613 billion.

Among the agriculture commodities, the export volume of palm kernel oil isexpected to increase 11.1 percent to one million tonnes and value toincrease 19.1 percent to RM2.38 billion next year.

This year, the volume is expected to grow 7.0 percent to 900,000 tonnesand its value rising 16 percent to RM1.998 billion.

Rubber export is forecast to rebound next year with a 1.0 percent hike inexport volume to 1.01 million tonnes and 3.2 percent increase in value toRM5.161 billion.

This year it is expected to decline by 9.6 percent in terms of volume toone million tonnes, and dropped 3.8 percent in terms of value to RM5billion, due largely to lower production following unfavourable weatherand reduced planted areas.

Meanwhile, cocoa export is expected to increase to 11,000 tonnes worthRM70 million next year from the estimated 10,000 tonnes worth RM62 millionthis year while export price is expected to increase to RM6,364 next yearfrom RM6,200 this year.

Exports of saw log is forecast to grow 0.4 percent to 4.83 million cubicmetres next year but value falling 2.6 percent to RM2.12 billion, whilethis year volume is expected to decline 7.6 percent to 4.81 million cubicmetres with value rising 9.7 percent to RM2.27 billion this year.

The export of sawn timber next year is expected to decline by a further6.6 percent to 2.7 million cubic metres but the value is expected toincrease 2.1 percent to RM3.204 billion.

In the mining sector, the report said that the export of crude petroleumis expected to increase 9.8 percent to 19.964 million tonnes next year andits value rising 20.1 percent to RM33.859 billion.

The export of crude petroleum is estimated to decline 2.7 percent thisyear to 18.174 million tonnes but high oil prices would see the valuerising 29.5 percent to RM28.188 billion.

As for liquefied natural gas export is forecast to grow 1.9 percent to21.34 million tonnes next year and its value rising 11.1 percent toRM20.742 billion, compared to this year where it is expected to increaseone percent to 20.936 million tonnes and its value rising 9.3 percent toRM28.188 billion.

And for tin, next year will see the commodity growing 5.2 percent to26,300 tonnes and value to increase 1.7 percent to RM763 million, whilethis year exports are likely to decline 16.7 percent to 25,000 tonnes andits value falling 20.7 percent to RM750 million.

-- BERNAMA