Commodity exports hit record RM90b

MALAYSIA raked in RM90 billion from commodity exports in 2007, a fresh record for the sixth consecutive year."The main contributors to this big jump are palm oil, cocoa and pepper. Palm oil surged by 42 per cent, cocoa by 25 per cent and escalating pepper prices fuelled exports by 30 per cent," Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui told Business Times in a telephone interview from Miri yesterday."Initially we forecast that we could surpass RM80 billion. Now, the numbers show we've raked in RM89.60 billion. 2007 has been a fantastic year.The value of Malaysia's commodity exports has risen by 13 per cent every year for the past five years, thanks to strong demand and better prices.Exporters are also not worried about a slowdown in the US economy as they have diversified their markets.Chin explained that America's healthcare sector will continue to buy our rubber gloves because they are a necessity."The biggest buyers of our palm oil are China, Europe and Pakistan. As for rubber, it is China, Japan and Europe. When it comes to timber, it is Japan, China and India. So, you see, the bulk of our green commodities go to China, not the US," he added.Recently, economists noted the increasing contribution of commodities to Malaysia's economy while manufacturing, which makes electrical and electronic (E&E) products, posted less encouraging numbers."Although exports of E&E still contribute a big chunk to the economy, plantation-based exports are expanding rapidly. Another point is this sector imports very little raw materials to make finished products for exports," he said."When you compare oil and gas exports, green commodities are renewable. We are constantly replanting old and unproductive trees with better-yielding ones as we go along," Chin said. -www.btimes.com.my