23/10/2008 (Bernama), Putrajaya - The private sector's help is being sought to find solution for the declining commodity prices especially for rubber and crude palm oil.

Minister of Plantation Industries and Commodities Datuk Peter Chin Fah Kui said the private sector can work together with the government and play an important role especially in the efforts to reduce the cost of producing the commodities, such as the cost of fertilizers and foreign labour.

"The Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC) have to discuss with the private sector so that we can gather bright ideas from them," he told reporters after the monthly meeting of the ministry which also had its 2008 Quality Day and Hari Raya celebrations today.

Chin said his ministry was also working and discussing with other related ministries including the Ministry of Agriculture and Agro-based Industry, Ministry of Domestic Trade and Consumer Affairs and the Finance Ministry in seeking the best solutions to counter the problem of falling commodity prices.

Discussions are also being held with the Ministry of Science, Technology and Innovation from time to time, to find ways that could be adopted in terms of science or from research and development efforts especially in reducing the cost of production.

Crude palm oil price is currently at RM1,620 per tonne compared with a price as high as RM4,300 per tonne earlier while rubber price has come down to RM6.12 per kg, compared with RM10.53 in July, greatly affecting the smallholders.

However, the measures being advocated by the government might need some time to ensure that the measures will be effective in the long run, Chin said.

Other than that, the ministry is also looking into new markets which have been less impacted by the economic crisis such as the Middle East market.

"Our main market is China, where 35 percent of our rubber production and 20 percent of our crude palm oil is exported to.

"But China is also facing a slowdown as the main market for its goods are Europe and the US. With Europe and the US facing an economic slowdown, China's market is also down, bringing a reduction in imports. Therefore, we have to find new markets which have not been badly affected by the crisis," he said.