Deputy Plantation and Commodities Minister Datuk Chan Foong Hin recently completed a working trip to China, where he negotiated palm oil trade agreements worth over RM230 million for Malaysia, Bernama reported.
Chan’s July 8–12 visit to China led to four memoranda of understanding (MoUs). According to a statement released today by the Ministry of Plantation and Commodities (KPK). Chan was there to promote Malaysian agriculture.
“The four MoUs were signed between Malaysian palm oil companies and businesses in China at the 15th China International Cereals and Oils Industry Summit in Nanjing on July 11, 2024,” it said.
Malaysian Kepong Bhd and BOCE Trade Service Co Ltd signed an MoU to export tocotrienol. In contrast, Taobao (China) Software Co Ltd and Able Perfect Group signed one to expand access to digital markets. Sawit Kinabalu Group and Taobao (China) Software Co Ltd signed one to trade crude palm oil. JF Nutritech and Palmort Food Tech (Shanghai) signed one to apply red palm oil in animal feed.
Chan, along with China Chamber of Commerce for Import/Export of Foodstuffs, Native Produce, and Animal By-products (CFNA) president Cao De Rong, attended the signing of the Memorandum of Understanding. Alongside Director General of the Malaysian Palm Oil Board Datuk Ahmad Parveez Ghulam Kadir.
With a projected transaction volume of roughly RM200 million through this trade agreement, the minister mentioned that Able Perfect, an independent palm oil refinery headquartered in Port Klang, hopes to increase its market share in China. Especially in refined palm oil and palm shortening.
He clarified that the four Memorandums of Understanding would entail diversifying the markets for palm oil products. These markets would include the health product industry, where tocotrienols—a powerful form of vitamin E derived from palm oil—would also be introduced. Thus, business-to-business and business-to-consumer sales channels will be possible by utilizing the well-known online marketplace Taobao.
“Malaysian companies must focus on high value-added and high-quality productions to remain competitive in the global market.
“With Malaysia’s annual palm oil production maintained at around 18 million tonnes, it is crucial to adhere to the standards of the European Union Deforestation Regulation and sustainable development principles,” he said.
Chan added that in March of this year, the Chinese government also authorized the export and use of palm tocotrienols in food applications.
It is likely that the aggregate value of these trade agreements will increase in the years ahead.
In order to facilitate communication and look into potential collaboration in the industry, Chan also hosted a business matching session with about 20 Chinese and Malaysian companies during the working visit.
The speaker stated that these measures aim to enhance bilateral collaboration in the industry. Therefore, resulting in mutual economic development and favorable outcomes for Malaysia and China.
