PM to witness three MoU signings on palm oil and rubber in China

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 1 percent at 2,191 ringgit ($537.80) a tonne at the end of the trading day. Trading volume stood at 49,614 lots of 25 tonnes each at the close of trade.

KUALA LUMPUR: Prime Minister Tun Dr Mahathir Mohamad is expected to witness the signings of three agreements on palm oil and rubber during his official visit to China from Aug 17 to 21.

According to the Ministry of Primary Industries, a memorandum of understanding (MoU) will be signed between the Malaysian Palm Oil Board and Tsinghua University on the promotion of Malaysian biofuel in China.

A second MoU will be formalised between the Malaysian Rubber Board and Hainan State Farms Investment Holdings Group Co. Ltd on rubberised bitumen road techology and rubber tapping automation and mechanisation. 

A third agreement will take place between Sime Darby Plantation Bhd and China National Cereals, Oils and Foodstuffs Corporation (COFCO) Group to develop downstream applications for palm oil and palm-based products.

In 2017, total trade in agricommodity between Malaysia and China came in at RM23.63bil.

That year, Malaysia's export of agricommodity and agricommodity-based products to China was RM19.1bil, which was 27% more than RM15bil recorded in 2016.

"The commodity export was mainly contributed by palm products valued at RM9.42 billion, followed by rubber and rubber products at RM8.09 billion," said the Ministry

As part of the Prime Minister's delegation to China, Minister of Primary Industries Teresa Kok will lead a mission from Aug 21 to 24 to promote Malaysian commodities. 

"Her delegation will comprise officials from the ministry, the Malaysian Palm Oil Board, Malaysian Rubber Board, LGM Properties Corporation, Malaysian Palm Oil Council, Malaysian Rubber Export Promotion Council, Malaysian Timber Council as well as the private sector," said the Ministry.