A presentation by Tan Sri Datuk Dr Yusof Basiron at the Perdana Leadership Foundation Seminar 2009 at Sime Darby Convention Center, August 20, 2009
The competitiveness of palm oil implies that it will remain as a source for sustainable and renewable raw material profitable for producers and attractive to users. The opportunity to leverage on biodiesel demand means that palm oil prices need no longer be subject to very low prices. Demand dynamics (shortages) suggest upside trends on palm oil prices. The future direction of the Malaysian palm oil industry is very much dependent on the trade relations it shares with buyers around the world. Malaysia relies on market expansion as most of its production is for export. The world is experiencing a chronic shortage of oils and fats in view of growing population, economic growth and demand for bio-fuels. This shared future entails that Malaysia must continue to promote trade with a win-win formula that allows for more usage of palm oil in formulations of new and established food and non-food applications.