KUALA LUMPUR, Feb 20 (Bernama) -- Primary Industries Minister Datuk SeriDr Lim Keng Yaik says he is pushing for more palm oil-based companiesespecially market makers to participate in the new Crude Palm Kernel Oil(CPKO) futures contract launched here Friday.
The minister said that he would report to the prime minister if thesecompanies do not participate in the new futures market over concerns thelack of participation would lead to Malaysia losing its competitive edgein the palm oil industry.
Currently, there were only four market makers, namely IOI Group Sdn Bhd,KL Kepong Sdn Bhd, KUOK Oil Grains Sdn Bhd and Wilmar Trading Pte Ltd, hetold reporters after the launch of the new contract.
He said that CPKO was poised to overtake coconut oil as the world'slargest lauric oil produced by 2005.
The new contract on the Malaysia Derivaties Exchange Bhd, which begantrading Friday would be from 10.30 am to 6.05 pm daily.
The new contract was launched because CPKO has been making significantgains in the world laurics oils sector during the past decade.
Global output of CPKO leapt by 80.7 percent to 3.23 million tonnes in 2003from 1.79 million tonnes in 1993, largely due to the expansion in oil palmplanted area in Malaysia and Indonesia.
Malaysia accounted for 51 percent of the world CPKO production in 2003followed by Indonesia at 31 percent.