Malaysia palm oil may outdo oil and gas
Malaysia palm oil may outdo oil and gas
KUALA LUMPUR (Reuters): Malaysia, the world's largest palm oil
exporter, expects record earnings from the commodity this year,
possibly surpassing even crude oil and gas, its top money
spinners.
Driven by rising global demand for edible oils and strong
prices due to a weak currency, palm oil contributed 12.8 billion
ringgit (US$3.4 billion) in export earnings in 1997, Primary
Industries Minister Lim Keng Yaik said at a news conference.
He said the value could climb to between 16 billion and 18
ringgit in 1998, judging from sales of palm oil futures through
the first quarter of the year and projections by government and
industry.
"If the ringgit strengthens, we may see last year's value of
about 12 billion ringgit being maintained, but still I don't see
this happening as most of our palm oil is sold in futures and we
have already sold up to August," Lim told reporters.
"Conservatively, I would put earnings from palm oil export for
this year at 16 billion ringgit but some plantations are
forecasting as high as 18 billion," he said.
Lim said the projection was higher than last year's export
earnings for crude and gas, which totaled 16.6 billion ringgit.
The minister said he could not give a projection for crude and
gas, which comes under the control of Prime Minister Mahathir
Mohamad's office. But he said in 1995, when palm oil exports were
at their highest value of 12.9 billion ringgit, they outperformed
crude and gas exports by 600,000 ringgit.
"There's a good possibility of palm oil surpassing oil and gas
again this year, we'll be keeping our fingers crossed," he said.
Lim said commodities seemed to be the only saving grace for
Malaysia's weakened economy and the government was doing all it
could to boost the sector.
He said commodities, including crude and gas, accounted for
53.5 billion ringgit or nearly a quarter of the total export
earnings of 221.4 billion for last year.
Lim said 38,000 foreign workers, who had become redundant in
other sectors of the economy, were being moved into plantations
to strengthen an existing labor force of 400,000.
"They will surely boost our agricultural harvest for this
year. The way we look at it, commodity exports are probably the
best bet we have for long-term recovery of the economy and the
ringgit," he said.