by Theleaders-Online | May 31, 2019 3:22 pm
KUALA LUMPUR: Outgoing Sime Darby executive deputy chairman and managing director Tan Sri Mohd Bakke Salleh is confident that Malaysian palm oil would still enter the European Union market despite a ban on using it as biofuel.
This is because palm oil may be used for other applications.
“Market forces would certainly come in the way with this whole decision to ban palm oil, because it is not just because of environmental or health reasons alone. There are other factors which have guided the thinking of the EU.
“So we really believe that due to the practical aspect of this ban, we may not necessarily see it being enforced in totality because it would face constraints,” he told the media at the group’s quarterly result briefing this afternoon.
Bakke further noted that the market constraints limits EU’s flexibility in substituting palm oil with rapeseed oil or other edible oils as a supply for the substitute edible oil.
Malaysia and the EU are at loggerheads over the latter’s proposed plan to restrict palm oil in biofuel starting 2021 and to completely phase it out by 2031.
Primary Industries Minister Teresa Kok has embarked on a tour to EU to present the counter narrative against EU’s plans.
Prime Minister Tun Dr Mahathir Mohamad meanwhile have said Malaysia may have to consider China as the new market for the palm oil.
Source URL: https://theleaders-online.com/eu-would-still-use-malaysian-palm-oil/
Copyright ©2020 The Leaders Online unless otherwise noted.