Malaysia's palm oil sector under pressure amid operational disruptions, yield losses from floods

SEVERAL states in Malaysia have been hit by sporadic floods in December caused by continuous heavy rain. Market watchers believe this could spell trouble for the country's crude palm oil (CPO) sector, especially if the floods continue.

The flooding has been particularly harsh in the Malaysian states of Kelantan, Trengganu, Pahang, Johor, Malacca, Negri Sembilan and Sabah.

Any impact on Malaysia's CPO supply will likely have an impact on the global industry, as Malaysia is one of the key producers of the commodity.