Daim: Be one step ahead in tackling palm oil's yo-yo market

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KUALA LUMPUR (Bernama): Malaysia must be one step ahead in planning ways to react to the price volatility in the palm oil market to protect the country's source of income, as well as the wellbeing of the smallholders, says Council of Eminent Persons chairman Tun Daim Zainuddin.

He said since Malaysia is a small country and 80% of its crude palm oil and palm oil-based products are exported, it is vital for the country to team up with Indonesia, the world largest producer of the commodity, especially in tackling the challenges from the European Union and the US-China trade dispute.

Noting that the price of CPO depends on market forces, he said:"This is normal even during my time. So it's not something new, but now, with the ongoing threats coming from the EU and the US-China trade dispute, we need to be smart." In March last year, US President Donald Trump imposed tariffs of up to 25% on Chinese imported goods and likewise the Chinese government retaliated by imposing tariffs of 25% on US$110bil worth of US goods, including soybean, which is the US' most important agricultural export crop."But don't react when it's too late, because it might affect our market and the smallholders," he said.

"There are crops that we can plant using science and technology and they can either grow vegetables, fruits or they can also be in the fishery industry. They can consider this to be their full-time or part-time job.

 

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