KUALA LUMPUR: According to the Plantation and Commodities Ministry, the government currently has no plans to control the price of Malaysian palm oil.
According to the ministry, this is because the market price of palm oil is influence by fundamental factors and market sentiment, which shifts in response to demand.
“The high demand for exports and the low supply of palm oil are two of the primary factors that influence the prices movement of crude palm oil (CPO).”
In a written response to a question from senator Datuk Bobbey Suan asking about long-term measures to regulate the price of Malaysian palm oil as a government-controlled product, the ministry stated, “These contribute to the increase in the price of palm oil in the market.”
The response, which was made public yesterday on the website of the parliament, also said that because the prices of soybean oil and Brent crude oil move in tandem in the market, they will both raise the price of CPO.
In the interim, the Ministry stated that it strives to ensure that CPO prices remain stable in the future through strategic actions such as partnering with Bursa Malaysia to launch the East Malaysia Palm Oil Futures Contract, a CPO futures contract exclusively for East Malaysia.
The Service likewise said it expects to expand the interest for palm oil and palm-based items through the reinforcing of existing business sectors like Pakistan, Turkey, and Asean nations and the investigation of new business sectors like Africa, the Center East and the Americas.