India : FTA Will Boost Malaysia Palm Oil Sector

KOTA KINABALU: Next week’s free trade agreement (FTA) signing between

Malaysia and India will be a further boost for the country’s palm oil

sector and Sabah, in particular, stands to benefit.

Noting that

the state was already one of Malaysia’s biggest palm oil producers,

Indian High Commissioner Vijay Gokhale said that demand for the

commodity was set to increase with the FTA.

“We will essentially

depend on Malaysia and Indonesia, so Sabah has a big business

opportunity because we will import more and more palm oil,” he said.

Gokhale

said India would be reducing duties on palm oil as part of the FTA,

which will make it easier for Malaysian palm oil players to export to

India.

“We will be continuing to import in growing quantities of

palm oil in the foreseeable future because India’s population is growing

and we can’t devote our land resources to the cultivation of palm oil,”

he said.

Gokhale had earlier met Sabah Chief Minister Datuk Musa Aman and briefed him on the impending FTA.

He said two Indian firms Ballarpur Industries and Punj Llyoyd Ltd had already invested in Sabah.

Ballarpur

had taken over the state’s sole pulp and paper manufacturer Sabah

Forest Industries while Punj Lloyd was involved in building the

Kimanis-Bintulu pipeline.

“I understand that nearly 1,000 Indian

nationals working on the pipeline project engineers as well as (general)

workers,” he added

Gokhale said India was hoping to develop with

Sabah other areas such as agro-based industries, tourism, education and

cultural exchange.

Source : The Star by Ruben Sario

Leave a Reply