KUALA LUMPUR: China has long been one of Malaysia’s principal export markets for palm oil, underscoring a resilient and strategically significant trade relationship between the two countries.
However, recent figures show a 39% contraction in shipments over the first 10 months of this year.
According to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, the downward trend points to broader issues surrounding competitiveness, pricing structures, supply chain efficiency and Malaysia’s overall positioning in an increasingly contested global market.
“We need to understand how Malaysia can regain its competitiveness and restore its long-established position in the Chinese market. As highlighted, this group collectively accounts for roughly 2.5 million tonnes of China’s palm oil requirements.
“Your perspectives carry significant weight in shaping how Malaysia strengthens its competitiveness moving forward,“ he told Chinese delegates at the Industry Dialogue with Chinese Buyers today.
Johari hopes that through this engagement, both countries can have an open and constructive discussion on several key areas.
These include the underlying factors contributing to Malaysia’s declining market share, respective views on pricing dynamics and supply expectations, and the broader competitive landscape among producing countries.
“Equally important, I would like us to explore practical opportunities to strengthen supply reliability, enhance product value, and better support the needs of Chinese buyers across various sectors,“ he said.
On Malaysia’s side, Johari said, the government will continue to uphold transparent and predictable export policies to ensure that actions do not disrupt the interests of Malaysia’s major trading partners.
Further,Malaysia welcomes continuous dialogue to better align expectations on pricing trends, market developments, and long-term supply planning.
“Ultimately, our objective from this engagement is to strengthen confidence in Malaysian palm oil as a secure, reliable and sustainable option for China.
“We also aim to deepen government-to-business and business-to-business collaboration by identifying opportunities for long-term supply arrangements, sustainability partnerships and two-way investment.
“At the same time, we seek to reinforce Malaysia’s position as a partner of choice for China’s growing edible oil, food manufacturing, oleochemical and renewable energy industries,” Johari said.
The Industry Dialogue with Chinese Buyers session, organised by the Malaysian Palm Oil Council (MPOC), has been comprehensive – from plantation visits and refinery engagements to discussions with Malaysian industry stakeholders, and even a taste of local heritage at the durian orchard.
The sessions serve as platforms for Malaysia to engage openly, understand both countries’ perspectives, and work together on practical solutions.
“I am especially pleased to meet with major Chinese palm oil buyers, as China remains one of Malaysia’s most important markets,“ Johari said, adding that he hoped these experiences have given the delegates deep insights into the Malaysian industry, capabilities and commitment to serving the Chinese market.
“Dialogues like this help us strengthen long-term trust and ensure that our policies and actions remain aligned with market realities,“ he said.
The dialogue session welcomed members and officials from key industry partners, namely the China Cleaning Industry Association, the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-Products and the Palm Oil Branch of the China National Vegetable Oil Industry Association.
