KUCHING: The successful launching of the East Malaysia Crude Palm Oil Futures (FEPO) on 4th October 2021 by the Minister for Plantation Industries and Commodities is a new milestone for the palm oil industry in Sarawak for the years ahead.
“Foremost, we thank the Ministry of Plantation Industries and Commodities, Finance Ministry, Bursa Malaysia Berhad and agencies for FEPO which will enable Crude Palm Oil to be traded directly from Bintulu Port which will improve the logistic costs of physical delivery from Sarawak and benefit upstream and downstream market players here,” stated Eric Kiu Kwong Seng, Chairman of Sarawak Oil Palm Plantation Owners Association (SOPPOA).
“As stated by the Chief Minister of Sarawak at the launching, FEPO will broaden the palm oil ecosystem in Sarawak and reduces the losses due to price differences when exported from peninsula Malaysia; this actually amounted to more than RM1 billion loss annually in the past. As such, FEPO will enhance the growth of the palm oil industry in Sarawak which currently has the largest planted area for oil palms and will be the largest producer for Crude Palm Oil in the coming years,” he added.
As a new impetus for the growth and development of the palm oil industry for Sarawak, FEPO will also spur the growth of NCR landowners into smallholders and bring faster development of the rural communities throughout Sarawak. With more than 59.2 % of current smallholders already certified under Malaysian Sustainable Palm Oil (MSPO) certification scheme in Sarawak as noted by the Chief Minister at the launch, this augurs well for the future development of the palm oil industry here as all derivative trading of palm oil in the international market involve certified sustainable palm oil.
SOPPOA will continue to support development of smallholders involved in palm oil cultivation in Sarawak as part of its activities as the largest palm oil association in the state with its members comprising large, medium and small estates, government linked agencies in promoting sustainable palm oil activities in Sarawak.