28/04/2009 (Bernama), Sandakan - Sabah's plantation industry should make use of better technology and planting materials to improve efficiency and productivity.

Chief Minister Datuk Seri Musa Aman said such steps were needed to face global demand and changes to the economic climate.

He said a year ago, the price of crude palm oil (CPO) breached the RM4,000 a tonne mark and for several months, prices stayed above RM3,000 a tonne.

"Companies were handing out fat bonuses while declaring handsome dividends for investors. But no one thought the price would drop.

"Events of recent months have shattered that confidence with palm oil prices falling to a low of RM1,390 per tonne in October last year," he said at the East Malaysia Planters Association (EMPA) annual dinner here last night.

Musa said fortunes can change in unexpected ways and in the case of the palm oil industry, that spell of good fortune of high prices and bullish demand, has come to an end.

He said to remain competitive, there was a need to keep on improving and expanding milling, bulking, refining and port facilities, to meet increased production of palm oil.

"An aggressive global marketing strategy to promote Malaysian palm oil, including the need to counter allegations of anti-palm oil groups, must be pursued.

"Environmentally friendly methods of cultivation and processing needs to be encouraged and emphasis given to the continued educating of planters in maintaining environmental standards," he highlighted.