KL palm firms to set up database

KL palm firms to set up database

KUALA LUMPUR: Malaysia's palm oil industry plans to set up a database in a move to reduce market dependence on foreign intelligence and to boost competitiveness, a report said Wednesday.

The intelligence unit, with an annual allocation of five million ringgit (US$1.32 million), will give market players a steady stream of reports on crop production and price, said Abdul Khalid Ibrahim, chairman of the Malaysian Palm Oil Association.

"With strong market intelligence, companies will be better at anticipating demand and supply and adjusting operations accordingly to compete against the world's 15 other edible oils," he told the New Straits Times daily.

The facility, enabling traders to monitor analyses and updates on supply and demand, would reduce the market's dependence on foreign sources such as the Chicago Board of Trade commodity market.

"The sector has been relying too much on information from abroad ... as a leading producer, we should have greater influence on the market," said Abdul Khalid, adding foreign sources could sometimes be misleading. -- AFP