Genting Plantations expects demand for palm products to advance in 2024

KUALA LUMPUR: Demand for palm products is projected to advance due to better economic conditions in 2024.

Genting Plantations Bhd chairman Datuk Seri Mohd Zahidi Zainuddin said it will continue to be supported by the price competitiveness of crude palm oil (CPO) against other vegetable oils.

"Palm oil prices are expected to be well supported at current levels in 2024 due to the seasonally low output cycle during the first half as well as overall supply constraints with Indonesia increasing local consumption for the food and biodiesel industry," he said in Genting Plantations 2023 integrated annual report.

He said palm oil is expected to be used in increasing quantities as global population and affluence levels continue to rise, further augmented by its versatility which lends itself to an expanding variety of food and non-food applications.

"As the most efficient oil-bearing crop on earth, palm oil will be depended upon to meet the world’s growing food and energy needs in light of the lack of arable land and to address food security," he added.

In 2023, the group’s average CPO price was 15 per cent lower at RM3,483 per metric tonne (mt) versus RM4,100 per mt in 2022.

Similarly, the average palm kernel price decreased by 33 per cent to RM1,875 per mt from RM2,784 per mt in the previous year.

Looking ahead to 2024, he said the group’s performance will be closely linked to the direction of palm product prices, which are influenced by a host of external factors, not least the global economic outlook.

On another note, he said the upcoming Johor-Singapore Special Economic Zone and the Johor Bahru-Singapore Rapid Transit System, slated for completion by end-2026 augurs well for the Johor property market.

It has presented viable opportunities for the group’s property division to further unlock the value of its landbank via planned development activities. - Bernama

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