Malaysian palm oil exports to China receive boost with signing of purchase agreements
Chinese companies inked several documents on the purchase of palm oil with Malaysian manufacturers on Monday as the Malaysian government eyes to attract more Chinese investment into the sector.
The agreements signed on Monday involve three Chinese companies and four Malaysian companies and are valued at 891 million U.S. dollars for the export of 1.62 million tons of palm oil
The four purchase intent documents were signed at the Malaysia-China Palm Oil Business Forum, organized by the Malaysian Palm Oil Board, the Malaysian Palm Oil Council and the China Chamber of Commerce of Foodstuffs and Native Produce.
Speaking to the press after the signing, Malaysian Primary Industries Minister Teresa Kok said the signing was significant for Malaysia and was a positive indicator for the country's export of commodity this year.
For his part, Chinese Ambassador Bai Tian said there is still room for increased exports of palm oil to China and the country has imposed no ceiling on the amount that could be brought in.
"The prospect of the Chinese market for Malaysia palm oil and palm oil industries is very bright and I have repeatedly said that China imposes no glass ceiling on the import of Malaysian palm oil and palm oil products," he said.
Bai added that palm oil is synonymous with Malaysia, with the crop having been developed in the country for over 100 years and has been recognized as a main driver of the country's economy.
According to the Malaysia's statistics, Malaysia exported 3.07 million tons of palm oil and palm oil products to China, up 7.3 percent increase from 2017.
Malaysian palm biodiesel exports to China have also seen a huge increase in 2018.