When monkeying around is good

Macaques could be the solution to making Malaysia’s palm oil more sustainable.

Palm oil is Malaysia’s largest industrial crop and makes up five percent of the country’s GDP. As one of the leading producers of palm oil worldwide, you can be sure that plantation owners would love to maximise their crop yields as best as they can.

However, these plantations are also ideal habitats for animals such as the Southern pig-tailed macaques and rats, who eat or damage the fruit, causing losses in annual crop yield — to the distress of farmers.

The monkeys were perceived to be the bigger pest, as plantation owners thought their diets mostly consisted of palm fruit. They have now been enlightened thanks to recent observation reports by researchers: the primates are actually valuable because of their omnivorous nature.

Researchers had already known that the monkeys would catch and eat the rats, but the fact that they consumed rats in far larger quantities than previously thought was a pleasantly surprising finding. In fact, a group of macaques can consume some 3,135 rats annually! Annual losses of US$112 per hectare can therefore be mitigated with these macaques — a viable and effective form of biological pest control for plantation owners.

Further, the macaques were found to only damage annual crop yield by 0.56 percent, unlike the rats who would destroy upwards of 10 percent.

At present, the monkeys are labelled vulnerable by the International Union for Conservation of Nature. Researchers aim to change this. With these findings in hand, they are advocating the valuable presence of macaques on plantations and are calling for them to be protected so that all may benefit — palm oil crop can be maintained or increased sustainably, and the macaque populations can be kept safe.

It’s easy to see the negatives and overlook the long-term sustainable options, just like how macaques were thought to be a pest in plantations till research proved otherwise. At Eastspring Investments, we believe that sustainable investing is key to delivering quality long-term investment outcomes. Learn more at www.eastspring.com/my

This document is produced by Eastspring Investments (Singapore) Limited and issued in:

Singapore by Eastspring Investments (Singapore) Limited (UEN: 199407631H)

Australia (for wholesale clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore, is exempt from the requirement to hold an Australian financial services licence and is licensed and regulated by the Monetary Authority of Singapore under Singapore laws which differ from Australian laws

Hong Kong by Eastspring Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.

Indonesia by PT Eastspring Investments Indonesia, an investment manager that is licensed, registered and supervised by the Indonesia Financial Services Authority (OJK).

Malaysia by Eastspring Investments Berhad (531241-U).

Thailand by Eastspring Asset Management (Thailand) Co., Ltd.

United States of America (for institutional clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore and is registered with the U.S Securities and Exchange Commission as a registered investment adviser.

European Economic Area (for professional clients only) and Switzerland (for qualified investors only) by Eastspring Investments (Luxembourg) S.A., 26, Boulevard Royal, 2449 Luxembourg, Grand-Duchy of Luxembourg, registered with the Registre de Commerce et des Sociétés (Luxembourg), Register No B 173737.

United Kingdom (for professional clients only) by Eastspring Investments (Luxembourg) S.A. - UK Branch, 10 Lower Thames Street, London EC3R 6AF.

Chile (for institutional clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore and is licensed and regulated by the Monetary Authority of Singapore under Singapore laws which differ from Chilean laws.

The afore-mentioned entities are hereinafter collectively referred to as Eastspring Investments.

The views and opinions contained herein are those of the author, and may not necessarily represent views expressed or reflected in other Eastspring Investments’ communications. This document is solely for information purposes and does not have any regard to the specific investment objective, financial situation and/or particular needs of any specific persons who may receive this document. This document is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. It may not be published, circulated, reproduced or distributed without the prior written consent of Eastspring Investments. Reliance upon information in this document is at the sole discretion of the reader. Please carefully study the related information and/or consult your own professional adviser before investing.

Investment involves risks. Past performance of and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of Eastspring Investments or any of the funds managed by Eastspring Investments.

Information herein is believed to be reliable at time of publication. Data from third party sources may have been used in the preparation of this material and Eastspring Investments has not independently verified, validated or audited such data. Where lawfully permitted, Eastspring Investments does not warrant its completeness or accuracy and is not responsible for error of facts or opinion nor shall be liable for damages arising out of any person’s reliance upon this information. Any opinion or estimate contained in this document may subject to change without notice.

Eastspring Investments companies (excluding joint venture companies) are ultimately wholly owned/indirect subsidiaries of Prudential plc of the United Kingdom. Eastspring Investments companies (including joint venture companies) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company Limited, a subsidiary of M&G plc (a company incorporated in the United Kingdom).