HEAVY rains and flash floods in parts of South-east Asia have hampered work at palm and rubber plantations, interrupted power supply and forced the evacuation of thousands of people.
Indonesia and Malaysia, the world’s two biggest palm oil producers, have been hit by deadly landslides and power outages, while Thailand and the Philippines are facing severe floods in some regions, according to government weather agencies. Elsewhere, Singapore received about half of its normal November rainfall on a single day over the weekend.
Torrential rain is not uncommon at this time of the year due to the monsoon, but the intensity of precipitation has been unusual. Palm oil rose for a fourth day in Kuala Lumpur on supply concerns, while rubber futures in Singapore surged as much as 6.8 per cent, before surrendering some gains.
Palm oil production in Malaysia may slump as much as 10 per cent during the first 25 days of November from a month earlier due to rain, according to Paramalingam Supramaniam, a director at Selangor-based broker Pelindung Bestari.
Power utility Tenaga Nasional said it had closed 14 sub-stations in the eastern Malaysian state of Kelantan because of the worsening flood situation, and state news agency Bernama reported more than 25,000 people have been displaced.
Twenty people have died in North Sumatra, Indonesia, this week because of landslides, according to the National Disaster Mitigation Agency. Sumatra is one of the country’s main producing regions for palm oil.
In the Philippines, the national weather bureau has warned of severe floods in the southern Caraga region, which accounts for a third of the country’s palm oil production. The archipelago has been hit by a series of severe storms this year, leading to extensive crop losses from rice to corn.
Heavy rainfall is forecast for two days in several areas of southern Thailand, which accounts for most of the country’s natural rubber production. The Thai Meteorological Department said on Thursday (Nov 28) that there was a risk of flash floods in the region. BLOOMBERG
