Set up JVs with local players in Myanmar, Malaysian palm oil exporters told

TheEdge Tue, Jun 16, 2020 04:15pm - 3 years View Original


KUALA LUMPUR (June 16): Malaysian palm oil exporters should increase their presence in Myanmar to boost their market share in view of the country’s economic growth and per capita income, says the Malaysian Palm Oil Council (MPOC).

“Malaysian companies should consider setting up joint ventures (JVs) in Myanmar, especially in consumer and horeca [hotel, restaurant and catering] packed oil,” said MPOC chief executive officer Datuk Dr Kalyana Sundram.

He was speaking in a webinar organised by the Ministry of Plantation Industries and Commodities, the Malaysian External Trade Corporation (Matrade) and the Malaysian Embassy in Yangon titled "Recapturing palm oil market share in the Golden Land post-Covid-19".

In his presentation earlier, Kalyana said palm oil accounted for 89% of total oils and fats imports in Myanmar, and palm oil imports have seen a compound annual growth rate of 5.8% over the past five years.

However, despite palm oil dominating Myanmar’s oils and fats imports, Malaysian palm oil only accounted for 9% or 76,645 tonnes of the country’s total palm oil imports of 890,000 tonnes in 2019.

Myanmar Edible Oils Association chairman Myint Kyu supported Kalyana’s call for Malaysian exporters to set up JVs in the country, while also highlighting that Malaysian palm commanded a premium over palm oil from other countries such as Indonesia.

Meanwhile, India Myanmar Chamber of Commerce vice president Naresh Kumar Dinodiya said any expansion into the Myanmar oils and fats market must be made with a long-term view.

“For the oil business, for bulk supplies, there are players who are trying to dominate. That needs to be broken because they have the storage facilities and the bulk selling networking. My view is that they [prospective entrants] should look at the long term, be serious players and engage in regular business,” he said.

Palm oil in Myanmar is primarily consumed by lower-income groups, and is mainly sold loose.

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