Take measures to stimulate the stock market

AMID the bloating palm oil stockpile and unstable prices, the government has finally rolled out its B10 biodiesel programme, with an increase of 3% palm oil content compared to the previous B7 version. Unfortunately, the European Union (EU) hasn’t been supportive of this move and has labelled it as an unsustainable fuel. Thankfully, China has come to our rescue by buying more of this commodity from us, while imports of palm oil by the EU have been on the decline for quite some time. A friend in need is a friend indeed.

If the EU proceeds to implement its resolution to import only sustainable palm oil certified by a single EU-sustainability certification scheme after 2020, the impact on this industry will be too great. If that happens, what will be the prospects of the many local plantation companies and the 650,000 smallholders who rely on this commodity for their livelihood?