Palm oil just became the sexiest product on the block and no, it is not used for rub-downs.

It is the main feedstock for biodiesel – something which more local investors are getting wind of, especially with Australia's Natural Fuel building the world's biggest biodiesel plant in Singapore.

Energy companies like Natural Fuel and Wilmar Holdings are bringing their goods to town because we're smacked right in the middle of feedstock abundance.

Malaysia and Indonesia are the world's largest suppliers of crude palm oil.

Some say the money pouring into biodiesel is ridiculous, especially when it comes to Singapore.

Why not Malaysia or Indonesia?

Well, I say it's a good thing, because it brings in business for a few other sectors of the local economy.

While direct local plays like Wilmar International and Advanced Holdings will definitely benefit from these biodiesel investments, plenty of other companies in extremely different business segments can't wait to jump on the biodiesel bandwagon.

And they may be onto something big, so watch them closely.

Property developer Yoma Strategic Investments said last month it wants to get in on the act too by developing a jatropha curcas plantation in Myanmar.

Jatropha curcas is a plant that can be used as feedstock for biodiesel.

Yoma's CEO Serge Pun told the Business Times they may venture downstream into the refinery business in 5 to 6 years.

Transport companies will also benefit from this, considering the amount of traffic we'll see when all systems are up and running.

Agriculture-based businesses like Zhongguo Powerplus might find a new segment to sell their soy beans to.

All in all, I say it's a good thing.

And I can't wait to see what else happens on this front.

Serene Lim