S KOREAN INVESTORS KEEN TO INVEST IN M'SIA'S PALM OIL INDUSTRY

From Choong En Han

SEOUL, April 13 (Bernama) -- South Korean investors are keen to get a slice
of Malaysia's palm oil industry, spurred by diverse palm oil applications in
the booming industry across the board.

"We know the palm oil industry offers a huge potential in terms of
diversification coupled with the strength and stability of Malaysia as an
investing destination for foreign investors," said Sonny Kim Sung Oh, Kuala
Lumpur Office Head, Woori Investment & Securities.

Kim said five big conglomerates in South Korea are constantly looking for
opportunities to venture into the palm oil industry.

"However, nothing is on the plate yet. We are looking for opportunities in
the upstream and downstream of the inudstry, both have the potential, but in
terms of short-term growth, upstream operations seem to be a much more viable
choice," said Kim in his paper titled "Investment Opportunities in Malaysian
Palm Oil Industry" on Tuesday at the Malaysia-South Korea Palm Oil Trade Fair
and Seminar (POTS) 2011.

He agreed that currently foreign investors might face difficulties to
penetrate into Malaysia's palm oil industry as many are reluctant to sell their
business given the commodity's high prices.

"The South Korean conglomerates are not considering small pockets of land
which are available, but vast tracts of land of at least 10,000 hectares to
start their business.

"We see good potential in Sarawak, Kelantan and Sabah," he said.

On palm oil prices, Kim said there might be a correction in crude palm oil
prices in the near term, with prices hovering at RM2,900 a tonne.

"The bottomline of companies can still be supported comfortably at this
level, but the important thing is the growing demand and positive sentiments
towards palm oil.

"Oil palm is very precious as an agriculture cultivation and also as an
energy source. To me, it is a perfect combination, which needs to be developed
further," he added.