08 September 1998
  • Palm oil rivals rubber production in Malaysia

    THE production of palm oil has become a more lucrative source of income than rubber in Malaysia, reports the Financial Times.

    The decline in the fortunes of rubber follows a US decision to sell off stockpiles of rubber. This has knocked the world price back 30%.

    Malaysia said natural rubber and rubber product export earnings rose 34.7% to M$4.33bn (£660m) in the first half of this year compared with the same period of 1997. But the value of palm oil exports increased 68.3% to M$8.62bn.

    Malaysia is pulling out of the International Natural Rubber Organisation (Inro) in protest at its failure to support prices.