To Singapore Macross
One of the things that our dear northern neighbour is good at is
flogging off its palm oil stocks. Its a very good way for them to
make purchases without hurting their economy too much.
They started this with the russians with the migs not too long ago.
Then the French Subs and now the Polish Tanks. Let me not focus on
the military side but rather on the economic ones.
Just say 50% of the 400m is in oil palm and textiles. (not rubber)
Assume that it is 150m palm oil and 50m textiles. What can Poland
do with 150m worth of palm oil? They can either sell it to someone
else or use it themselves.
Firstly, it has to be shipped there (if they plan on using it) ..
So more contracts for crude palm oil carrier ships. (Malaysia
shipping company gains)
Then, what can be made out of palm oil? Plastics, Cosmetics,
Shampoo, Detergent. That means, that either some MNC or some
Malaysian company (like Lam Soon) will go there to build a factory
to make the stuff. Hence, more trade.
Then, once the factory is set up, it will continually need palm oil
to function .. more exports for Malaysia. Poland gains by exporting
end result like shampoo, detergent, cosmetics and plastics .. those
everyday products are needed all over the world so there is plenty
of profit to be made by polish companies.
Assuming Poland exports part of that 150m worth of palm oil,
whichever country buys it will follow seps 1-3 as well.
Then there is the additional benefit of hitting the American
Soybean Oil producers. America is the worlds largest producer and a
sworn enemy of Canada's Canola Oil and Malaysia's Palm Oil. This
will definately dampen demand for Soybean oil in the world as
Poland will try to flood the oil market with as much excess Palm
Oil as possible. Malaysia does not mind as supposedly, its their
replanting season so its supply is low at the moment. (Malaysia
only sells palm oil for weapons on every second or third year I
noticed)
Lastly, when there is 150m worth of palm oil sold, that is 150m
DIRECTLY into the Malaysian economy (or rather the big palm oil
companies like Sime Darby, IOI, etc), and those companies will
invest the money and pay the government in tax. So its +150m rather
than -150m out of Malaysian budget. Of course, the worst scenario
for Malaysia will be that Poland sell all 150m to India, who will
use it as they already have the factories.
But remember, Malaysia also have shipped 100s of millions worth of
palm oil over to Russia and France, who will be probably either
using it (unlikely) or selling/donating it to African countries.
The greedy Malaysian companies will still be able to track where
the palm oil goes and repeat steps 1-3 to any country that has the
palm oil.
So its a very sneaky way of getting the weapons and creating a new
market.
For the textiles, Malaysia still has lots of clothing factories in
Batu Pahat .. 50m worth of Orlando, Pepper, GQ and ELBA clothes are
going to Poland, who can start new markets for the Malaysians.
