11/02/2011 (Borneo Post Online) - Sabah’s palm oil industry may hit firmer grounds, especially with demands for the product expected to increase in India.

High Commissioner of India to Malaysia, Vijay Gokhale, who said this added that the high demand for palm oil products is forcing them to import more.

He said the signing of a free trade agreement between Malaysia and India next week is also expected to open up greater business opportunities, thus including the palm oil industry for Sabah.

Already the nation’s biggest contributor for the industry, he said India essentially depends on Malaysia and Indonesia for the product, adding that they will also be reducing its duties as part of the deal of the free trade agreement.

“This will make it easier for Malaysian palm oil exporters to export to India. We will be continuing to import in growing quantities of palm oil in the foreseeable future because India’s population is growing and we cannot devote our land resources to cultivation of palm oil,” he told reporters after a dialogue with the Sabah Indian Chambers of Commerce and Industry (SICCI) here, yesterday.

Gokhale said the Indian Government is also hoping to develop with Sabah other areas such as agro-based industries, tourism, education and cultural exchange.

Earlier, the High Commissioner met Chief Minister Datuk Seri Musa Aman and briefed him about the free trade agreement, officially titled “Comprehensive Economic Cooperation Agreement”, and also requested him to look at the provisions that could benefit Sabah in terms of export and import of goods, services and investments.

He explained that it is basically a 3-in-1 agreement, adding that Musa assured that they would study the agreement and look at the opportunities.

Gokhale said there is potential for partnership ventures between Sabah and India, and it is evident with the presence of two Indian firms in the state presently.

“There is a large investment in Sabah in Sabah Forest Industries for the Indian paper manufacturer, Ballarpur Industries, as well as the presence of another major company called Punj Lloyd Limited, involved in building the Kimanis-Bintulu pipeline,” said Gokhale.

He said there are some 1,000 Indian nationals working on the project – engineers as well as general workers.

Meanwhile SICCI president, V Suppiah said they were keen on learning from India and hoping to team up to develop Sabah.

“The business relationship between Malaysia and India is nothing new. In the olden years, the Indian traders came to Malacca to trade gold and spices.

“I sincerely believe that we could improve our business links, between Sabah and India, through joint ventures for the benefits of the people, on both sides,” he said.