ISLAMABAD – Malaysia is in talks with at least six countries, includingPakistan, on the possibility of using palm oil to pay for arms as SoutheastAsia’s third-biggest economy seeks to replace old equipment to boost itsdefense capabilities, reported Reuters.
The report states that Malaysia has struggled to update its defenseequipment over the years and a cut in its defense budget this year all butderailed efforts to replace navy ships, some of which have been in servicefor 35 years or more.
Costs have been a big hurdle but using palm oil to help pay for equipmentcould open new avenues to upgrade, Defence Minister Mohamad Sabu said onMonday.
Mohamad said discussions on paying with palm oil had started with China,Russia, India, Pakistan, Turkey and Iran. “If they are prepared to accept apalm barter trade, we are very willing to go in that direction,” Mohamadtold Reuters in an interview.
We have a lot of palm oil.
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The report stated that Southeast Asian countries would need to worktogether to make sure their interests are not drowned out by big powerslike the US and China jostling for control, Mohamad said. “We want thisregion to remain peaceful and neutral,” he said.
Malaysia and Indonesia, the world’s two largest palm oil producers, areembroiled in a dispute with the European Union over a plan to phase out thecommodity from renewable fuels used by the bloc by 2030 over deforestationconcerns.
