KUCHING: The Ministry of Plantation Industries and Commodities (KPPK) will look into issuing a licence for East Asia Palm Products Sdn Bhd (EAPP) to purchase crude palm oil from nearby oil refining companies.
KPPK deputy minister Datuk Willie Mongin said EAPP had previously only received crude palm oil supplies from companies in Bintulu and it cost the company more than RM30,000 per delivery.
“When it get supplies from Bintulu, it will spend about RM100 per ton.
“It also has existing pipelines that can be channelled from a nearby refinery to its factory but does not have a licence to do so.
“I will look into why this happens because it should be given priority to buy from refineries that are closer to its factory so that it can produce more cost effective and cheaper oil,” he said, adding that the lower logistic cost would contribute to cheaper product prices for the consumers.
Willie said this when met by reporters during his visit to EAPP today.
He added that his ministry would discuss this issue further with the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) and that he was committed to investigating and researching the matter to help industry players.
“We at the ministry level have to help the industry to generate progress in the country.
“When they have high production rates, they will require more workers. They will get more profits and will pay commercial tax to the government leading to national development,” he said.
Despite the situation, Willie said he could not promise them the stars and the moon.
However, he assured that his ministry would do its best for the industry players and consumers as a whole.
“I have no reason not to help them and refine the processes that could prevent them from progressing,” he said.