Malaysia targets 50 pct increase in palm product exports to Philippines by 2020

KUALA LUMPUR: Malaysia is targetting the export of palm oil and palm-based products to the Philippines to increase by 50 per cent to RM3 billion by 2020, from RM1.99 billion recorded in 2015.

Minister of Plantation Industries and Commodities Datuk Seri Mah Siew Keong said the Philippines, which was flourishing with infrastructure development and with a population of approximately 100 million, offered huge potential for Malaysian palm oil and palm-based products.

The minister, who returned from the Philippines on Wednesday, after leading a rubber and palm oil economic and promotion mission, said coconut oil was the favourite edible oil among Filipinos.

”But, due to insufficient production of coconut oil, food manufacturers in the Philippines are encouraged to adopt the use of palm oil as an alternative, which is affordable and in line with economic development,” said Mah who also met importers and traders of palm oil and rubber in the Philippines.

He held bilateral discussions with the Secretary of Energy, Philippines, AlfonsoG.Cusi and the Secretary of Trade and Industry Philippines Ramon M. Lopez on export and investment opportunities in the Philippines palm oil and rubber sectors.

The bilateral discussion with Cusi focused on exploring possible collaboration in the area of renewable energy especially in biodiesel, bioethanol and second-generation biofuels between the two countries.

The Philippines is currently using B2 (2.0 per cent biodiesel) and was looking to improve the mixture to B5 (5.0 per cent biodiesel) using coco-methyl ester (CME).

If B5 policy is mandated by the Philippines government, it would require some 350 million liters or 323,494.5 tonnes of CME.

Mah said Malaysia had ample capacity to supply sustainable palm based biodiesel and praised the Philippines’ commitment to increase the blend of biofuel in their biodiesel mandate. — Bernama