30/03/2026

Editorial T: 03-7784 6688 F: 03-7785 2625 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 E: advertise@thesundaily.com

SCAN ME

MONDAY | MAR 30, 2026

CPO futures, rubber expected to trend higher amid supply concerns KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade higher this week, supported by stronger demand expectations, a trader said. RM55 to RM4,597 and September 2026 advanced RM66 to RM4,570. Hormuz, which has disrupted global shipping routes and pushed Brent crude oil prices above US$100 (RM400) per barrel.

the market to be soft this week, with prices and demand moving sideways, albeit with a slight upward bias. “Shortages of naphtha and butadiene are affecting nitrile latex production, inadvertently prompting many glove users to switch to natural rubber latex gloves, thereby slightly increasing bulk latex demand. However, the market has become sluggish and cautious due to the war, and rubber is among the commodities affected,” he said. On a weekly basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 increased 44.5 sen to 803 sen per kg while latex in bulk surged 12.5 sen to 689.50 sen per kg. CIMB collaborates with SC and Bursa to advance Malaysia’s Islamic capital markets PETALING JAYA: CIMB Group Holdings Bhd has affirmed its commitment to develop an innovative instrument to advance Malaysia’s Islamic capital markets, in line with the Securities Commission Malaysia (SC) Capital Market Masterplan 2026-2030 (CMP). CIMB will collaborate with the commission and Bursa Malaysia on a pilot project under the SC’s ICM Innovation Lab (FIKRALab). The innovation aims to broaden the investible universe for syariah-compliant funds to participate in Asean’s Islamic banking growth. CIMB enters this next phase from a position of strength, being one of Asean’s leading Islamic banking franchises. Guided by its purpose of advancing cus tomers and society, the group continues to deepen its Islamic banking franchise as a core growth pillar. Today, more than half of its Malaysian financing book is syariah-compliant, while CIMB Niaga in Indonesia is in the process of spinning off its Islamic banking business to be a full fledged Islamic bank. CIMB Group CEO Novan Amirudin said the CMP charts an ambitious direction for Malaysia’s capital markets, and the bank is grateful to be part of this pilot project, supporting the SC in bringing that vision to life. “CIMB’s participation reflects our continued advocacy in the capital market and digital innovation. “Our Islamic franchise has reached meaningful scale, and we see a significant opportunity to further unlock this value by providing new syariah-compliant structures to investors with a syariah mandate,“ he said. This collaboration is aligned with CIMB’s Forward30 strategy, where Islamic finance is a key priority growth engine anchored on scale, innovation and sustainability. As the CMP emphasises innovation, resilience and international competitiveness, CIMB’s proactive collaboration underscores its role not merely as a market participant, but as a contributor to the next phase of capital market evolution in Malaysia. The SC launched FIKRALab as part of its efforts to drive the next phase of growth in the Islamic capital market. The platform introduced under the Capital Market Masterplan 2026-30 is designed as a co creation and applied research hub to develop new syariah-compliant financial products and solutions. FIKRALab will prioritise innovations aligned with Maqasid al-Shariah , with an emphasis on delivering real economic value and wider social impact.

The weekly trading volume surged to 363,166 lots, while open interest decreased to 236,911 contracts. The physical CPO price for March South dropped by RM40 to RM4,560 a tonne. Meanwhile, the rubber market is also expected to trend higher, supported by stronger demand for the commodity amid supply disruptions in the global synthetic rubber segment, according to the Malaysian Rubber Glove Manufacturers Association. It said the market is currently facing a severe shortage of nitrile butadiene rubber (NBR) latex following the ongoing blockade of the Strait of

“As NBR is derived from petroleum and serves as the primary raw material for nitrile gloves, the crisis has directly affected both its availability and cost, while also impacting chemicals used in glove production as well as plastic packaging materials. “This may boost demand for natural rubber, signalling an upward trajectory for next week, with prices likely to follow regional rubber futures and remain supported by tight supply amid the ongoing West Asia conflict,” the association told Bernama. However, industry expert Denis Low expects

Iceberg X Sdn Bhd proprietary trader David Ng said the US-Iran conflict has raised expectations of stronger palm oil demand. “(This week) we expect prices to range between RM4,500 and RM4,680 per tonne,” he told Bernama. Last week, the April 2026 contract fell RM40 to RM4,540 per tonne, May 2026 slipped RM8 to RM4,611 while June 2026 edged up RM20 to RM4,631. Meanwhile, the July 2026 contract gained RM40 to RM4,620 per tonne, August 2026 rose

SAF gains traction as M’sia pushes energy transition

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

o EcoCeres bets on waste-based feedstocks to tackle cost and scalability issues in sustainable aviation fuel production

PETALING JAYA: Sustainable aviation fuel (SAF) is fast emerging as a critical pathway for decarbonising aviation and shipping, with industry players racing to scale supply ahead of tightening 2030 and 2050 climate targets. EcoCeres general manager of operations Roslan Ismail said aviation remains one of the hardest sectors to decarbonise, leaving SAF as the most practical near-term solution as airlines and regulators push for lower emissions. “Aviation has limited alternatives to liquid fuels in the near term. SAF helps bridge the gap between long-term decarbonisation goals and current operational realities,” he told SunBiz in an exclusive interview. Roslan noted that with global airlines already committing to SAF blending targets by 2030 supply constraints remain a key bottleneck, underscoring the urgency to expand production capacity. SAF can reduce lifecycle carbon emissions by up to 80% compared with conventional jet fuel, making it a “key enabler” not only for aviation but also for other hard-to-abate sectors such as shipping and heavy transport. For Malaysia, the stakes are rising as its aviation hubs continue to see growing passenger and cargo traffic. The push towards SAF is expected to shape the country’s broader energy transition while reinforcing its role in regional logistics. EcoCeres is betting on waste-based feedstocks to tackle one of the industry’s biggest challenges – cost and scalability. Its production model converts waste and residue materials into SAF using hydro processed esters and fatty acids (Hefa) technology, a certified pathway that allows fuels to be used within existing aircraft engines and infrastructure without major modifications. Roslan explained that relying on waste feedstocks such as used cooking oil and industrial residues reduces exposure to volatile and food-linked raw materials, which have historically driven up biofuel costs. “Hefa offers higher conversion efficiency and consistent fuel quality, supporting more predictable production at scale,” he said, adding that integration into global SAF supply chains improves long-term economic viability. Central to this strategy is EcoCeres’ facility

creation and ecosystem development as key benefits, particularly in areas such as feedstock collection, logistics and specialised technical services. “This supports the foundations of a circular economy, where waste streams are repurposed into higher-value, low-carbon products,” he said. EcoCeres’ broader model aligns with this vision, converting waste such as used cooking oil and palm oil mill effluent into SAF, hydrotreated vegetable oil and renewable naphtha under its “Turn Waste to Wonders” approach. By focusing on underutilised resources, the company aims to extend the lifecycle of existing materials while avoiding competition with food supply chains. Over time, this could catalyse the development of supporting industries, from waste collection networks to advanced pro cessing capabilities, strengthening Malaysia’s position in the regional bioeconomy. However, Roslan stressed that scaling SAF adoption will depend heavily on policy clarity and industry collaboration. He called for robust regulatory frameworks that cover sustainability criteria, certification standards, and incentives to provide confidence for long-term investment. Equally important is alignment with international standards, given the cross border nature of aviation and shipping. “Collaboration across the value chain is critical, from fuel producers and airlines to airports, logistics providers and regulators,” Roslan said. Such partnerships would support offtake agreements, infrastructure readiness and operational integration, while ensuring a steady supply of feedstocks through improved collection systems. Roslan believes SAF can play a meaning ful, if gradual, role a Malaysia advances its energy transition agenda, including under the National Energy Transition Roadmap. “The impact will take time, but SAF can help build momentum and position Malaysia as a credible participant in the regional energy transition,” he said.

in Tanjung Langsat, Pasir Gudang, Johor, which serves as a cornerstone of its regional expansion. With a licensed production capacity of 350,000 tonnes per year, the plant is positioned within a key industrial and logistics hub, offering strong connectivity to ports and regional markets. Roslan described Malaysia as a strategic base for the company’s wider Asia decarbonisation ambitions, citing its access to suitable waste feedstocks, supportive policy direction and export capabilities. “Facilities like Pasir Gudang help build capability, confidence and supply readiness as Asia progresses towards its climate and energy transition goals,” he said. Beyond fuel production, SAF development is expected to have spillover effects across Malaysia’s green economy. In the near term, increased SAF availability could help airlines meet tightening emissions requirements without overhauling existing infrastructure, easing the transition towards more sustainable operations. At the same time, Roslan pointed to job Roslan says SAF helps bridge the gap between long-term decarbonisation goals and current operational realities.