Malaysia eyes oil palm

Malaysia eyes oil palm

KUALA LUMPUR (Reuters): Malaysian companies should establish offshore joint ventures in oil palm plantations to take advantage of expected increases in the world's demand for oils and fats, Primary Industries Minister Lim Keng Yaik said yesterday.

He said with Malaysia facing severe land and labor constraints, "the only alternative for us therefore is to look beyond Malaysia's shores."

"If we really want to continue enjoying some share of the expected increases in demand for oils and fat, we must look elsewhere to plant oil palm," Lim said at a palm oil seminar in Kuala Lumpur.

He said following Indonesia's decision to suspend new joint ventures of oil plantations involving foreigners, Malaysian firms should look for opportunities in West Africa and Latin America.