It is not easy for an Indian investor to trade here, and they don't have their own CPO futures contracts so its better that we share the prices to create opportunities and create demand for CPO.
As petrol prices increase, the global demand for more sustainable energy sources will also rise. Malaysia is the world's largest palm oil producers and palm oil is the world's most traded vegetable oil.
We hope to increase it to more than 60 percent and the increase in listing fees will certainly help us do that.
One of the ideas for starting this initiative is that we want to try and create a platform where the Singapore retail investor can be more comfortable trading in our market. Ever since CLOB closed down, we've not seen much activity from Singapore retail (investors). So in our discussions with SGX, they are one of the target groups for setting up this link.
We've done an independent survey together with SGX to try to ascertain the level of interest. The survey results have been quite positive.
Crude palm oil (CPO) futures have remained strong on Bursa Malaysia Derivatives for the past 25 years and will continue to be the world's largest derivatives exchange dealing in palm oil contracts.
If we don't do something about it, more and more of our stocks are going to be dropping off from the index.
Trading volume was far from what we wanted. Velocity was very low, at about 25 per cent (for the whole of 2005).
I think the local authority needs to be comfortable. It is something that can be abused if we don't do it properly.
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