Industrial training report: Permodalan Nasional Berhad (PNB). Special project: Price fluctuation of crude palm oil (CPO) in Malaysia

Embarking on my transformative 6-month industrial training journey at Permodalan Nasional Berhad (PNB) was an unforgettable experience. As a student, I had the opportunity to immerse myself in the dynamic world of finance. I am a curious and ambitious student, joined PNB with a hunger for knowledge and a desire to apply classroom theories to real-world scenarios. Armed with a background in finance, I was ready to dive headfirst into the complexities of the financial industry. From managing assets to fostering economic development, PNB’s influence extended far beyond its headquarters. In this report, my research centered on unravelling the enigma of crude palm oil (CPO) prices. The lush palm oil plantations of Malaysia held secrets that I aimed to uncover. The heart of my investigation lay in the relationship between CPO prices and macroeconomic variables. I analysed gross domestic product (GDP), inflation, exchange rate and money supply dynamics. A robust GDP signalled economic vigour, driving demand for CPO. When nations thrived, their appetite for this versatile commodity surged. Furthermore, high inflation eroded consumer wallets, impacting CPO consumption. Conversely, low inflation encouraged investment and consumption. In addition, exchange rate movements influenced CPO exports and competitiveness. A weaker ringgit boosted exports, while a stronger one tightened margin. Lastly, an expansionary money supply fueled economic activity, spurring CPO demand. Conversely, tightening the tap cooled the markets. My analysis revealed some insights. For instance, an insignificant relationship between GDP growth and CPO prices emerged, while inflation exhibited a significant negative relationship. Exchange rates and money supply both have insignificant relationship with CPO prices. Armed with these findings, I crafted recommendations for inflation and future research. As my industrial training ended, I reflected on the wealth of knowledge gained. PNB had not only nurtured my intellect but also ignited my passion for financial research. The palm oil groves whispered their stories such as their resilience, vulnerability, and role in shaping economies. In the corridors of PNB, I found mentors who fuelled my curiosity and peers who challenged my assumptions. My journey was more than a mere internship.