https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Wed, 24 Sep 2025 04:50:26 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/from-local-to-global-examining-the-impact-of-pre-and-postinternationalisation-strategy-by-bursa-malaysia-of-global-oil-markets-to-the-futures-crude-palm-oil/ Tue, 08 Jul 2025 00:54:18 +0000 https://opiej.mpob.gov.my/?p=2466 Read more]]> This study investigates the level of cointegration between futures crude palm oil (FCPO) and competitor oils during the pre- and post-internationalisation strategy implemented by Bursa Malaysia Derivatives Berhad (BMDB). The Autoregressive Distributed Lags (ARDL) model is employed to analyse cointegration and causality among these variables using weekly data from January 1980 to December 2022. The empirical results show a reduction in the level of cointegration by 0.017% with soybean futures, 0.179% with exchange rates and no cointegration with Brent crude oil futures after implementing BMDB’s international strategy. The results from this study contribute to more robust financial models for the FCPO market and provide empirical input to authorities on how policy or strategy shapes the relationship between FCPO and competitor oils so that BMDB can maintain FCPO status as a global index reference.

]]> https://opiej.mpob.gov.my/factors-contributing-to-chinas-intake-of-palm-oil/ Tue, 04 Jan 2022 07:53:56 +0000 https://opiej.mpob.gov.my/?p=1677 Read more]]> China, a country with the largest population of over 1.3 billion was identified as a region with huge potential for export market. Currently, China is one of the largest palm oil importers and has shown an increasing trend over the years, with CAGR of 7.87 from 1.40 million tonnes to 6.37 million tonnes between 2000 and 2020. This translated into a scenario of a growing palm market in China. Thus, this study aims to investigate factors influencing the demand for palm oil in China using Autoregressive Distributed Lag (ARDL). Annual time series data from 1980 to 2019 has been used for the analysis. The bound test indicates that there is a long run relationship among the studied variables. The empirical results showed that gross domestic products, both in producing and importing countries; consumer price index; palm oil consumption; the population of China; palm oil and soyabean oil prices are the significant determinants of Malaysian palm oil demand in China.

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