Breaking News-RPT-UPDATE 2-Malaysia pushes harder for palm biofuels

KUALA LUMPUR, Dec 10 (Reuters) - Malaysia said on Wednesday it would aim to convince independent power producers to boost the use of palm oil as a fuel, but industry observers remained sceptical because of the government's overly high subsidies to support the sector.
The world's second-largest palm producer said it will sell palm biodiesel at domestic pumps in 2010, as well as lure IPPs to burn palm oil as biodisel -- measures aimed at mopping up excess stocks of the vegetable oil.