Palm oil as health food? Experts say to seek new markets

PETALING JAYA: Economists are proposing that Malaysia mount an aggressive campaign to highlight the benefits of palm oil to woo new markets in the event India decides to boycott Malaysian palm oil in a row sparked by criticisms of its actions in Kashmir.

Barjoyai Bardai, of Universiti Tun Abdul Razak .

Barjoyai Bardai of Universiti Tun Abdul Razak suggests that Malaysia promote the rich beta carotene content of its palm oil and undertake aggressive marketing efforts in the Netherlands, Turkey, US, Iran and Spain.

Red palm oil has high concentrations of beta carotene, a pigment found in foods, which can be converted to vitamin A, an essential nutrient, and which has antioxidant properties.

Barjoyai said Malaysian universities and research centres should embark on research to produce new food that capitalises on palm oil’s rich beta carotene content as a new staple for a good diet for everyone.

“Production of protein and fat flour as food enrichment, flavour and an energy provider could create a new market for oil palm,” he told FMT, adding that this could help attract prospects from the Netherlands, Turkey, the United States, Iran and Spain.

Barjoyai said efforts to market oil palm must not stop with the fruit itself. “Break down palm seeds, kernel and crude oil into useful food ingredients as a new cheaper and enriched alternative,” he suggeted.

Palm oil could also be used to produce animal feed by using nanotechnology. “In essence, we have to move palm oil into another stage of high-end food production,” he said.

Nazari Ismail, a professor at Universiti Malaya.

Nazari Ismail, a professor of economics at Universiti Malaya, says Putrajaya should step up efforts to reassure people that palm oil is not bad for health.

“Then the Europeans and Americans will be keen to import more palm oil from us,” he said when contacted, adding that these two markets are bigger than India’s.

Nazari said the government must convince Europe and the United States that the industry here, does not harm the environment.

In recent times European countries have sought to curb the use of palm oil products as part of their efforts to fight deforestation.

While most of the economists who spoke to FMT agree that the government should try to resolve the matter diplomatically, they also suggested Malaysia look at alternative markets.

Yeah Kim Leng of Sunway University Business School says the government should attempt to find an amicable solution to the dispute with India. Rather than resorting to a tit-for-tat strategy, it should consider boosting imports from India.

“But we should also seek to export more vigorously to other nations including the traditionally large markets such as China and Pakistan,” he said.

On the home front, Yeah, says the government should accelerate the implementation of B20 biodiesel – a blend of 20% palm methyl ester and 80% petroleum diesel – to absorb the anticipated rise in stocks.

Wong Chen, Kelana Jaya MP

PKR’s Wong Chen, who heads the party’s investment bureau, shares a similar sentiment, saying there is a need to drive up internal consumption via programmes such as biodiesel.

However, it would be faster to try to open up new markets in the Indian subcontinent, Middle East and Africa, he said.

Wong also says Putrajaya should be cautious when handling issues related to China, such as the position of Hong Kong’s chief executive, Carrie Lam, who has China’s backing.

Earlier this month Prime Minister Dr Mahathir Mohamad said Lam should resign because of the unrest in Hong Kong.

Wong said Malaysia cannot afford to suffer a drop in palm oil demand from the two major markets of India and China. - FMT