Malaysia's Palm Oil Industry Responds On Environment - Unveils New PR Campaign - ENN

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TANJONG MALIM, Malaysia -- Malaysia's palm oil industry, stung by global criticism over the environmental impact of rapidly expanding plantations, has launched a campaign to tell the world that it cares for forests and wildlife. The world's largest plantation company, Synergy Drive, which is being formed through the merger of three state-run businesses, is leading the way, as a consumer backlash against palm oil could spell the end of booming demand for the product.

"We big plantations have always been accused of not looking after the rainforests," said Synergy Drive chief executive Ahmad Zubir Murshid, who spent a day last weekend trying to convince journalists of the firm's green credentials. "What we are going to do is create sanctuaries of animals and birds so that they can co-exist with our plantations." The industry-funded Malaysian Palm Oil Council has also chimed in, saying the nation has committed 20 million ringgit ($5.91 million) for conservation of wildlife, including the orangutans.

But conservationists are not entirely convinced, pointing out the industry has taken years to realise the damage it has done. Friends of the Earth says almost 90 percent of the orangutan habitat has now disappeared and if the destruction continues, Asia's only great ape could become extinct in 12 years.

With palm oil prices up nearly 68 percent since January, 2006, plantations now cover about 4 million hectares in Malaysia, and firms are expanding fast into neighbouring Indonesia where they had 889,354 hectares in 2006.

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