Malaysia's CPO earns $5.5b

Malaysia's CPO earns $5.5b

KUALA LUMPUR (Dow Jones): Malaysia should earn 21 billion ringgit (US$5.5 billion) in palm oil exports this year, up sharply from 12.1 billion ringgit in 1997, said Primary Industries Minister Lim Keng Yaik, the national news agency reported Monday.

The sharp increase in export earnings would coincide with a projected fall in palm oil production to 8.3 million tons in 1998 from 9.1 million tons in 1997, Lim said.

He explained production was much affected by the El-Nio and La-Nia weather phenomena, Bernama said.

Lim expects palm oil prices to remain firm next year, with strong demand coming from growing populations amid shortages in fats and edible oils.

Lim said the shortages in part result from internal strife in Indonesia, the second largest exporter and producer in the world, behind Malaysia.