27/11/2008 (The Edge Daily), Kuala Lumpur - The burning of palm oil to generate electricity is not plausible at this point in time, said Minister of Plantation Industries and Commodities Datuk Peter Chin Fah Kui.

"We've already spoken to Tenaga Nasional Bhd on this matter. The feedback we got was that if you wanted to use palm oil as a generating fuel, they would have to make changes to their power generators. Thus if it is for immediate usage, there is a problem," he said.

Nonetheless, Chin said palm oil was being used as a fuel source in some generators in Sabah. "As a result, palm oil could be suitable for use as a electricity fuel source in the state," he added.

He was commenting on the request by the Malaysian palm oil growers to burn excess palm oil to generate electricity after initial efforts to reduce output via replanting failed to stem the slide in palm oil prices.

Chin commended the palm oil players for collectively making an effort to address the issue. He added that the fertiliser players should take a page from the big plantation boys about addressing the issue of fertiliser prices, which have yet to come down despite the reduction in oil prices.

"We are currently talking to the fertiliser players, and a price review is up in January. We are hoping they will be pragmatic," he said.

On the matter of the government's mandatory 5% biodiesel blend, Chin said it was still on track for February next year.

Chin addressed reporters after the opening ceremony of De Fine Nature furniture outlet, which is an initiative by the Malaysian Timber Industry Board (MTIB), a statutory body accredited to Chin's ministry.

He said the MTIB would continue its efforts to help boost Malaysia's furniture industry, in addition to increasing the participation of bumiputera furniture makers.

"At the moment, bumiputera furniture companies only make up 2% of the entire sector," he said.

MTIB's future plans include developing its five-acre plot of land in Johor, transforming it into a permanent exhibition for furniture.

Despite intense competition from countries such as China, Chin said he was pleased to see Malaysian furniture companies holding their own.

"Our export value of furniture keeps increasing. In 2007, it was RM6 billion; as at October this year, it had already reached RM4 billion," he said. However, he warned there could be a slowdown as a result of the global financial crisis.