Since the Fukushima nuclear tragedy in 2011, the Japanese government approved a Strategic Energy Plan for industries in Japan to embrace renewable energy, as a step towards enhanced environmental friendliness standards.
As such, interest among Japanese firms in the potential of crude palm oil (CPO) products for power generation is on the rise. Given skyrocketing petroleum prices, as well as the commodity’s non-renewable nature, CPO is poised to be the next major renewable energy source. This in turn shines the spotlight on Malaysia as the second largest producer of palm oil worldwide, contributing close to 40% of the world’s global palm oil exports.
Recognising the opportunity offered by domestic CPO products, Yutaka Shoji, Japan’s foremost futures trading company listed on the JASDAQ Securities Exchange with over 62 years of experience in commodity futures, has spread its wings to local shores,having recently registered as a licensed derivatives brokerage firm with Securities Commission Malaysia.
The Tokyo-based player is also a registered member of the Tokyo Commodity Exchange, Osaka Dojima Commodity Exchange, Tokyo Financial Exchange and the Singapore Exchange.
Malaysia’s open business climate and strong bilateral ties with Japan have been the driving factors underlying Yutaka Shoji’s decision to invest more than RM13 million in setting up a presence in the country.
In an industry that is worth RM140.1 billion, the commodities sector contributes close to 15% of the country’s export, with palm oil contributing RM77.8 billion or 55.6%.
“The CPO market in Malaysia has much potential, and has not been fully explored. We see ourselves taking a role in advancing the market, as we have the necessary skill sets in commodity futures trading to offer price stability for both local and global buyers.
“We are currently the only futures brokerage firm from Japan to have a presence in Malaysia, and we’re here to connect local producers to Japanese buyers and to open up the market to both groups of stakeholders,” said Tsuyoshi Morita, Managing Director of Yutaka Shoji Malaysia.
“Asia is the heart beat of commodities trading. We have had a presence in Singapore for almost 30 years, specialising in rubber futures trading, and it is about time for Yutaka Shoji to come to Malaysia, with a specific focus on CPO futures as the market has strong growth prospects.