Japan’s top brokerage firm bullish on Malaysian CPO

Japan’s leading brokerage firm Yutaka Shoji says the crude palm oil market in Malaysia has not been fully explored. (Bernama pic)

KUALA LUMPUR: Japan’s foremost brokerage firm, Yutaka Shoji, is bullish on Malaysian crude palm oil (CPO) and is investing more than RM13 million in its operations in Malaysia.

Yutaka Shoji was registered as a licensed derivatives brokerage firm with the Securities Commission Malaysia in February and is the first futures brokerage firm from Japan to have a presence in Malaysia.

In a statement, Yutaka Shoji Malaysia managing director Tsuyoshi Morita said Malaysia’s open business climate and strong bilateral ties with Japan have been the driving force underlying Yutaka’s Shoji’s investment decision.

“The CPO market in Malaysia has much potential and has not been fully explored.

“We see ourselves taking a role in advancing the market, as we have the necessary skill sets in commodity futures trading to offer price stability for both local and global buyers,” he said.

Morita said Yutaka Shoji will connect local producers to Japanese buyers and open up the market to both groups of stakeholders.

He said Yutaka Shoji’s primary focus is on the trading of crude palm oil futures (FCPO) contracts, bringing its stellar expertise in offering price stability and market strategies to buyers.

“We foresee demand from Japanese buyers comprising up to 50 per cent of our initial business, given Japan’s need for CPO as part of its renewable energy policy.

“We also aim to attract local retail participants who would like to set up trading accounts to benefit from the risk which producers and buyers seek to mitigate, and also leverage on arbitrage opportunities, which will make up the other 50 per cent of our business,” he said.

Morita said that with petroleum prices going up, CPO is poised to be the next major renewable energy source.

He said that after the Fukushima nuclear tragedy in 2011, the Japanese government approved a strategic plan for industries to embrace renewable energy as a step towards enhanced environmentally friendly standards.

Yutaka Shoji has been operating in Singapore for almost 30 years, specialising in rubber futures trading.

It is listed on the Jasdaq Securities Exchange and has more than 60 years of experience in commodity futures.

The company is also a registered member of the Tokyo Commodity Exchange, Osaka Dojima Commodity Exchange, Tokyo Financial Exchange and the Singapore Exchange. - FMT