KUALA LUMPUR: Malaysia has secured more than RM230 million in palm oil trade deals at the 15th China International Cereals and Oils Industry Summit in Nanjing.
Further, four memorandums of understanding (MoU) were signed between Malaysian palm oil companies and businesses at the event, which took place on July 11.
Two of the four MoU signed are between Kuala Lumpur Kepong Bhd (KLK) and BOCE Trade Service Co Ltd for tocotrienol exports, and between Taobao (China) Software Co Ltd and Able Perfect Sdn Bhd for expanding digital market access. The other two were Taobao (China) Software and Sawit Kinabalu Sdn Bhd for crude palm oil (CPO) trade, and JF Nutritech Sdn Bhd and Palmort Food Tech (Shanghai) for the application of red palm oil in animal feed.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin was on a working visit at the event to promote Malaysian agricommodities in China. He witnessed the MoU signing ceremony together with Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir, accompanied by China Chamber of Commerce for Import/Export of Foodstuffs, Native Produce and Animal By-products president Cao De Rong.
“Able Perfect, an independent palm oil refinery based in Port Klang, aims to expand its presence in the Chinese market, particularly in refined palm oil and palm shortening, with an estimated business volume of about RM200 million through this trade deal,“ Chan said.
He highlighted that the MoU aim to expand the palm oil products trade into new sectors.
This includes leveraging the globally renowned e-commerce platform Taobao to develop online business-to-business and business-to-consumer sales channels, and entering the health product market with tocotrienols, a potent form of vitamin E derived from palm oil.
The initiatives mark a significant milestone for Malaysian palm oil enterprises.
Chan emphasised that 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 European Union Deforestation Regulation standards and sustainable development principles, he said.
Palm oil is one of the most versatile and efficient vegetable oils, with diverse and easily processed characteristics, providing significant advantages and opportunities for research and development (R&D) and product innovation.
Chan said the Chinese authorities approved the export and use of palm tocotrienols in food applications in March this year. Thus, the overall value of these trade deals is expected to increase in the coming years.
Chan also held a business matching session with around 20 Malaysian and Chinese enterprises, providing a platform for exchange and exploring cooperation opportunities in the palm oil trade. He said these initiatives will deepen bilateral cooperation in the palm oil sector, promoting mutual economic prosperity and win-win outcomes for Malaysia and China.
