RTRS-Malaysia's 2012 palm oil output seen inching up

KUALA LUMPUR, Jan 19 (Reuters) - Malaysia's 2012 palm oil production is expected to rise for a second year as more estates start producing after the opening up of land in Borneo and an aggressive replanting campaign from two to three years ago, an industry body official said on Thursday.

Output this year will inch up 2.3 percent to 19.3 million tonnes from 18.9 million tonnes in 2011 driven partly by the maturity of new planted areas in Sarawak state in Borneo island, said an official from the Malaysian Palm Oil Board.

The first official forecast on Malaysia widens the gap between the No.2 producer and its biggest rival, Indonesia, where output is expected to rise six percent to 25 million tonnes this year.