KUALA LUMPUR, 1/10/2021 – Bursa Malaysia Derivatives Berhad (“Bursa Malaysia Derivatives”) will be launching the East Malaysia Crude Palm Oil Futures (“FEPO”) Contract to meet the evolving needs of the Sabah and Sarawak palm oil market players for greater price transparency and alternative risk management tool.
The launch of FEPO will be officiated by Datuk Dr. Hajah Zuraida Kamaruddin, Minister of Plantation Industries and Commodities; Datuk Seri Panglima Haji Hajiji Haji Noor, Chief Minister of Sabah; and Datuk Patinggi (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg, Chief Minister of Sarawak, through a Virtual Launch Ceremony on Monday 4 October 2021. The FEPO Contract, which recently received Shariah-compliant status, will be made available to traders on 4 October 2021.
“With Sabah and Sarawak accounting for nearly half of the country’s Crude Palm Oil production, we identified a need to provide a hedging mechanism that caters to the East Malaysian palm oil players,” said Datuk Muhamad Umar Swift, Chairman of Bursa Malaysia Derivatives and Chief Executive Officer of Bursa Malaysia Berhad. “The approved port tank installations in Sabah and Sarawak namely in Bintulu, Lahad Datu and Sandakan will improve the logistics costs of physical delivery and benefit both upstream and downstream market players in East Malaysia.”