Palm oil, rubber product exports expected to increase this year
Last updated on 15 March 2017 - 06:29pm
KUALA LUMPUR: The exports of palm oil and rubber products are expected to increase by 4% and 7% respectively in 2017.
In stating this, Plantation Industries and Commodities Deputy Minister Datuk Datu Nasrun Datu Mansur (pix) said the government will continue its initiatives to strengthen the global market for the two commodities.
“The export of crude palm oil (CPO) is also expected to recover following the increase in mature palm oil plantations with the solid average CPO price estimated at between RM2,700 and RM2,800 per tonne,” he told the Dewan Rakyat yesterday.
Datu Nasrun said in 2016, the exports of palm oil products were worth RM67.6 billion, recording an increase of 6.9% compared to 2015, whereas the average price of CPO increased 23.2% at RM2,653 per tonne.
“Nevertheless, CPO exports have recorded a drop of 13.2% to 17.3 million tonnes following the El-Nino phenomenon.
“In terms of demand for palm oil products, we have exported to almost 170 countries around the world. The European Union (EU), India, China, the United States (US) and Japan being the major importers, bringing a total of RM34.1 billion or 50.4% exports for Malaysia,” he said.
Datu Nasrun was responding to Anuar Abd Manap (BN-Sekijang), who had asked the government to state the current performance and position of rubber and palm oil industries nationwide and the industries’ projection for 2017.
As for the rubber sector, he said the industry has contributed a total of RM24.8 billion in 2016, recording a slight drop of 1.6% compared to 2015.
The exports of natural rubber in 2016 dropped to 673,841 tonnes whereas the average price of standard Malaysia Rubber (SMR20) has increased to RM5.68 per kg.
“The EU, US and China are among the major export markets with total exports worth RM15.6 billion or 62.7% from the exports of rubber products,” Datu Nasrun said.
He said the government targets an increase of 7% in the exports of rubber products by strengthening the existing market share and exploring new markets.