Rising global energy prices are supporting demand for bio-based commodities like palm oil, with the biofuels sector poised to benefit, says Malaysia’s minister
KUALA LUMPUR: The surge in global energy prices can potentially support demand for bio-based commodities, particularly palm oil in the biofuels sector.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said tensions in West Asia have contributed to rising energy costs, indirectly influencing commodity prices.
“The Plantation and Commodities Ministry is monitoring closely developments in the geopolitical conflict in West Asia and its potential impact on global trade and commodity markets,” she said in a statement.
Current developments are putting pressure on global supply chains, especially in energy, shipping and logistics.
Noraini added that exports of Malaysia’s main commodities are proceeding as usual based on the ministry’s current assessment.
The commodities include palm oil, rubber, pepper, cocoa and wood-based products.
However, she warned that a prolonged conflict could increase logistics, transportation and shipping insurance costs.
This would affect operating costs for the sector.
The government will work closely with industry players and international partners to ensure smooth exports.
It will also work to maintain the stability of the country’s commodity supply chain.
“The ministry will continue to strengthen the resilience of the plantation and commodities sector through market diversification strategies,” Noraini said.
This will be done through increased productivity and strengthening value-added Malaysian commodity products.
