Malaysia urges Indonesia to cooperate on palm oil to boost prices<\/p>\n
Agence France-Presse, Kuala Lumpur<\/p>\n
Malaysia called on Monday for Indonesian cooperation over palm
\noil production and marketing to help reduce stocks and keep
\nprices at an "acceptable level".<\/p>\n
"We should cooperate and not undercut each other to compete
\nfor existing markets," Primary Industries Minister Lim Keng Yaik
\ntold delegates to the International Palm Oil Congress 2003.<\/p>\n
Malaysia and Indonesia are the world's two biggest palm oil
\nproducers, with Malaysia accounting for about half of global
\noutput.<\/p>\n
"Both should be looking for new markets and to introduce new
\napplications of palm oil through research and development," Lim
\nsaid.<\/p>\n
Malaysia was seriously considering introducing legislation to
\nmandate the blending of diesel with palm oil or palm methyl ester
\nto reduce stocks and keep prices up and this was one of the areas
\nwhere the two countries could team up, he said.<\/p>\n
"When prices are trending downwards, both Malaysia and
\nIndonesia should increase the use of palm oil as a fuel to reduce
\nglobal excess supply of the commodity," Lim said.<\/p>\n
"Let us share our technologies and legislative experience to
\nproduce a healthy market for palm oil and a healthy environment."<\/p>\n
Lim said there was potential for palm oil to become a fifth
\nfuel or energy source for Malaysia, as it could be blended with
\ndiesel and used without any engine modifications.<\/p>\n
Extensive tests using palm biodiesel had been conducted on
\nbuses and the results had been "positive," he said.<\/p>\n
"Emissions from diesel engines using palm biodiesel are
\nrelatively free from sulfur dioxide and other undesirable
\npollutants which are emitted from petroleum diesel," he added.<\/p>\n
Lim has warned in the past that Malaysia could lose some
\nmarket share to Indonesia in five years due to its competitor's
\nincreased output and lower costs.<\/p>",
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