China 'keen' to buy more Malaysian palm oil

KUALA LUMPUR: China is keen to buy more Malaysian palm oil and the purchase this year will increase, according to Chinese Ambassador to Malaysia Bai Tian.

“We are keen to increase the Malaysian palm oil trade and we have been encouraging our companies to buy more Malaysian palm oil and related products,” said Bai Tian at a media roundtable today.

“I believe the (purchase) number will increase this year. We have been telling Chinese buyers to buy more local palm oil and products,” he added while briefing Malaysian media on the upcoming Belt and Road Summit and the Malaysian Prime Minister’s visit to China.

The envoy said demand is very huge for Malaysian palm oil in China, which has a population of 1.4 billion, as it is of high quality and competitive in pricing.

“I hope this year we will witness more purchase of Malaysian palm oil. We do not impose a glass ceiling to the purchase of Malaysian palm oil and palm oil products,” said Bai Tian.

China is the third biggest buyer of Malaysian palm oil in the world, but the largest purchaser of Malaysian palm oil and related products.

The ambassador said China is looking at upstream and downstream cooperation with Malaysian oil palm companies. 

On Monday, Prime Minister Tun Dr Mahathir Mohamad said Malaysia has asked China to buy more palm oil, at the conclusion of the new deal on East Coast Rail Link.

He told reporters: “We are taking advantage of the signing of the ECRL agreement to work out the purchase of palm oil from China, that will happen.”