Malaysia-Indonesia council offers great potential
MALAYSIA and Indonesia, the two largest palm oil producing countries that account for 85% of world CPO, recently agreed to set up a Council of Palm Oil Producing Countries (CPOPC). How will this be different from a government-to-government arrangement between the two nations and what do you hope the council can achieve?
Chow: The idea behind it is very positive, as Malaysia and Indonesia are the biggest producers of palm oil in the world. The problem is, if it is set up as a cartel, there will be a very negative impact because cartels usually don’t work. The proposed council must, very importantly, have market intelligence. Both countries should pool their resources to look at how the production of palm oil is, and how our competitors are doing. It will allow both countries to strategise on what they are going to do.