Najib’s claim on palm oil prices irresponsible, says Kok

Primary Industries Minister Teresa Kok says like other commodities, palm oil will experience fluctuation in prices.

PETALING JAYA: Primary Industries Minister Teresa Kok has dismissed Najib Razak’s claims that the cancellation of Chinese-led projects in the country had affected palm oil prices.

She said palm oil, like other commodities, experience fluctuation in prices, and noted that there was now an excess in production.

“There are ups and downs, even when he was prime minister,” the Seputeh MP said after an event in her constituency here today.

Kok said that all this while, China had been buying palm oil from Indonesia and Malaysia, with more being bought from Indonesia because it was cheaper.

Some 60% of China’s palm oil was bought from Indonesia and 30% from Malaysia, she said, adding that this trend would continue this year.

“Chinese companies are price sensitive. For Najib, as a former prime minister and finance minister, to simplify that the cancellation of projects has caused a drop in prices is irresponsible.”

At a meet-the-people-session in Kerinchi yesterday, Najib said China was Malaysia’s largest market for commodities.

He said that when he was the prime minister, he had persuaded Beijing to increase its palm oil purchases, which was why the price of palm oil was high then.

He claimed that when the Pakatan Harapan-led administration cancelled Chinese-led projects in Malaysia and bilateral relations were affected, China reduced its purchase of palm oil.

Asked whether there had been a drop in oil palm demand from China, Kok said the Malaysia Oil Palm Board would release the figures which were being compiled.

She said she would not be surprised if there was a drop in demand, given that there was an excess in palm oil production and soybean oil around the world.

In Malaysia, she said, palm oil end stocks hit a record high of 3.22 million metric tonnes in December last year.

Kok said the price of palm oil had had now surpassed the RM2,000 per metric tonne mark after rising to RM1,700 two months ago.

“For 2019, we hope to breach RM2,700 per metric tonne.” she said.

Earlier, she handed out appointment letters to new Federal Territories Residential Representative Council (MPPWP) members for the Seputeh zone. -FMT