MPOB: US Trade Policy Changes To Have Minimal Impact On Palm Oil Sector

BANGI, Nov 14 (Bernama) -- Projected changes in the United States' (US) trade policy are not expected to significantly impact the country's palm oil sector following Donald Trump's victory in the recent US presidential election, the Malaysian Palm Oil Board (MPOB) said today.

MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said it was too early to determine the new policies Trump would implement, although tariff changes were a common occurrence in the palm oil sector.

"For example, India recently raised the import duty by 20 per cent on food products such as palm oil. If tariffs increase, the negative impact will be more pronounced in the importing country, as there are few alternatives to palm oil, other than domestically produced oils like soybeans.

"Palm oil entering markets like the US is primarily for industrial use, where it cannot be replaced by soybean oil. If tariffs increase, palm oil exports to the US will decline, leading to higher costs for their consumers," he added.

Ahmad Parveez made these remarks following the signing ceremony of a palm-based transformer oil commercialisation agreement between MPOB and Glide Technology Sdn Bhd, here today.

Earlier, Ahmad Parveez explained that MPOB's research in various aspects of palm oil had led to the development of palm-based transformer oil, which is used in electrical substations. 

He highlighted that, in addition to being environmentally friendly, the palm-based oil meets the specifications set by the International Electrotechnical Commission and boasts a higher flash and fire point than petroleum-based transformer oil.

"In this regard, the use of palm-based transformer oil can help reduce fire risks in electrical substations," said Ahmad Parveez.

He also noted that MPOB, in collaboration with Glide Technology, TNB Research, and Universiti Tun Hussein Onn Malaysia, is working together to assess the technical capabilities of palm oil-based transformer oil for use in Malaysia’s electrical substation network.

Ahmad Parveez added that this palm-based transformer oil, a product of MPOB's research, has been registered with the Malaysian Intellectual Property Corporation under the trademark category, branded as 'MPOB-Glide Transformer Oil'.

-- BERNAMA