Allocation To Promote Export A Boost For Palm Oil, Other Commodities

By S. Joan Santani KUALA LUMPUR, Oct 22 (Bernama) -- The US$68.33 million (RM286 million) allocation to promote the export of palm oil and other commodity products will help support the industry's growth, said Malaysian Palm Oil Council (MPOC). MPOC Chairman, Lee Yeow Chor, said these home-grown commodities would also improve the current account balance of the country significantly. The 2017 Budget, tabled by Prime Minister Najib Razak in Parliament Friday, also allocated US$11.94 million (RM50 million) to conduct scientific research to enhance the quality of palm oil products. (US$1 = RM4.18) "The research allocation to improve the quality of palm products is strategically wise as product and food safety are important attributes of the country's palm oil and improving them will further enhance the brand image of Malaysian palm oil," he told Bernama. Felda Global Ventures Holdings Bhd Group, Chief Executive Officer, Zakaria Arshad, said the budget was both inclusive and far-sighted. "Najib has delicately balanced the needs of business by allowing companies which increase their revenues in 2017 to qualify for reduced tax rates and also fulfilled the wishes of the rural people with increase infrastructure development in their areas. "FGV hails the government support for smallholders by increasing the replanting incentives and providing smallholder estate infrastructure funding," he said. The government has allocated RM20 million to upgrade estate roads to help oil palm smallholders. Under the budget, a RM30 million grant will be provided through Malaysian Palm Oil Board for replanting of oil palm by smallholders. Meanwhile, National Association of Smallholders Malaysia (NASH) President, Aliasak Ambia, said the government has fulfilled the smallholders' request for replanting allocation. He said, however, the amount was still inadequate. "To undertake replanting, usually the government will pay the smallholders RM7,500 per hectare for Peninsular Malaysia and RM9,500 for Sabah and Sarawak. "We think that RM30 million allocation is still inadequate for the vast hectares. Therefore, we are going to set a date to meet the minister to discuss this matter," he said. On the industry outlook, Philip Futures Dealer, David Ng, said the allocation will bode well for the commodity industry. "The market also reacted well to the positive sentiment after the announcement of the allocation. In the longer run it may spur the crude palm oil price," he said. -- BERNAMA