Palm oil ex­ports may see boost post-Brexit

New Straits Times - - Business -

KUALA LUMPUR: The United King­dom’s trig­ger­ing of Ar­ti­cle 50 and its en­su­ing de­par­ture from the Euro­pean Union (EU) in­creases op­por­tu­ni­ties for Malaysian com­pa­nies in food ex­ports, es­pe­cially for com­modi­ties such as palm oil.

Con­sult­ing firm Glen­reagh Sdn Bhd man­ag­ing di­rec­tor Nordin Ab­dul­lah said Malaysian com­pa­nies would have more op­por­tu­ni­ties in the UK as these com­pa­nies al­ready had the ca­pac­ity to op­er­ate in highly reg­u­lated and com­pet­i­tive en­vi­ron­ments.

He said in the medium-to-long term, one of the ar­eas that Malaysia would ben­e­fit from the UK-EU split was in the area of food ex­ports, es­pe­cially palm oil.

“It is no se­cret that cer­tain coun­tries in the EU are less re­cep­tive to im­ports of palm oil. Malaysia can now relook at how they deal with the is­sue, as reg­u­la­tions and at­ti­tudes will change post-Brexit.

“Malaysia’s ex­ports of palm oil to the EU for Fe­bru­ary stood at 153,165 tonnes, ver­sus 1,759 tonnes to the UK,” Nordin said in a state­ment yes­ter­day.

On how Malaysian com­pa­nies can ben­e­fit from the changes cre­ated by the UK’s de­par­ture from the EU, he said: “What we are see­ing now is the open­ing rounds of a ne­go­ti­a­tion which is ex­pected to take two years be­fore a fi­nal deal is reached.

“It maybe coun­ter­pro­duc­tive to re­act too quickly. There is still a long way to go.”

A palm oil tanker load­ing at North­port, Port Klang. Bri­tain’s exit from the Euro­pean Union spells op­por­tu­nity for palm oil ex­porters as reg­u­la­tions may change post-Brexit.

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