Palm oil industry needs to invest more in downstream activities

THE local palm oil sector which has been driven by the upstream segment in the past decades is set to change its course through increased contribution from the downstream segment in the coming years, according to the Performance Management and Delivery Unit (Pemandu), and Malaysian Palm Oil Board (MPOB).

Ku Kok Peng, director of Pemandu’s palm oil and rubber national key economic areas (NKEA), points out that the future of the palm oil industry in the country lies in downstream activities, thus reducing its dependency on the fluctuation of crude palm oil (CPO) prices and increased margins.