KUALA LUMPUR, April 19 — Demand for palm products is projected to advance due to higher financial circumstances in 2024.
Genting Plantations Bhd chairman Datuk Seri Mohd Zahidi Zainuddin stated it can proceed to be supported by the value competitiveness of crude palm oil (CPO) in opposition to different vegetable oils.
“Palm oil costs are anticipated to be properly supported at present ranges in 2024 due to the seasonally low output cycle in the course of the first half in addition to total provide constraints with Indonesia rising native consumption for the meals and biodiesel trade,” he stated in Genting Plantations 2023 built-in annual report.
He stated palm oil is anticipated to be used in rising portions as international inhabitants and affluence ranges proceed to rise, additional augmented by its versatility which lends itself to an increasing number of meals and non-food functions.
“As probably the most environment friendly oil-bearing crop on earth, palm oil will likely be depended upon to meet the world’s rising meals and vitality wants in gentle of the dearth of arable land and to deal with meals safety,” he added.
In 2023, the group’s common CPO worth was 15 per cent decrease at RM3,483 per metric tonne (mt) versus RM4,100 per mt in 2022.
Similarly, the common palm kernel worth decreased by 33 per cent to RM1,875 per mt from RM2,784 per mt in the earlier yr.
Looking forward to 2024, he stated the group’s efficiency will likely be intently linked to the course of palm product costs, that are influenced by a number of exterior elements, not least the worldwide financial outlook.
On one other notice, he stated the upcoming Johor-Singapore Special Economic Zone and the Johor Bahru-Singapore Rapid Transit System, slated for completion by end-2026 augurs properly for the Johor property market.
It has introduced viable alternatives for the group’s property division to additional unlock the worth of its landbank by way of deliberate improvement actions. — eNM
