MALAYSIA TO STEM DECLINE IN PALM OIL EXPORTS TO BANGLADESH

By P. Vijian

DHAKA, Dec 12 (Bernama) -- Malaysia is ramping up efforts to reverse the
decline pattern in exports of palm oil to Bangladesh, which has dropped
significantly this year compared to 2008.

Last year, 217,264 metric tonnes of palm oil were exported to Bangladesh,
but from January to October this year, the export figures stood at only 56,726
metric tonnes, worth RM137 million.

"We are stepping up efforts by hosting trade fairs and exhibitions to steer
forward. We hope in the future Malaysia's level of share in Bangladesh market,
which is 30 per cent, should increase," Plantation Industries and Commodities
Minister Bernard Dompok told the media in Dhaka Saturday.

"The potential is huge here (Bangladesh), it will only get better with
increasing prosperity and requirement for oil and fats," he said.

According to officials, the drastic drop in exports last year was due to
defaults by Bangladeshi buyers as the commodity price reached an upward trend,
rising as high as RM4,600 per metric tonne in March 2008.

Bangladesh, with a population of about 160 million people, imports over one
million metric tones of palm oil to meet its growing domestic demand, and
Malaysia had been a regular supplier.

However, of late Indonesia had also emerged as a major exporter to
Bangladesh.

"There are plenty of opportunities for Malaysian private sector players to
explore in Bangladesh," Dompok said.

"Demand is increasing with tandem of economic growth and income. Current per
capita consumption stands at 8.6 kg compared to the world's average consumption
of 22 kg," he said.

He also asked the Bangladeshi government to utilise the Palm Oil Credit
Payment Arrangement (POCPA), which was stopped some time ago.

The minister is in Dhaka to officiate the inaugural Malaysia-Bangladesh Palm
Oil Trade Fair and Seminar 2009 (POTS), jointly organised by Malaysia Palm Oil
Council (MPOC) and Malaysia Palm Oil Board (MPOB). (US$1=RM3.99)
-- BERNAMA