Palm oil exports may see boost post-Brexit
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.