Malaysia to export more palm oil to China after MoU

Malaysian palm oil futures fell over 1 percent on Friday, recording a fifth session of declines in six, tracking weakness in soyoil on the U.S. Chicago Board of Trade (CBOT).

BEIJING: Malaysia will be exporting more palm oil to China in the next five years.

A Memorandum of Understanding was signed Thursday (April 25) for China to buy an additional 1.9 million tonnes of the commodity, worth about RM4.56bil, from 2019 to 2023.

The price was based on US$600 per tonne with an exchange rate of RM4 for US$1.

Representing Malaysia at the signing ceremony was Malaysian Palm Oil Council board member Datuk Dr Tan Yew Chong.

On China's side, it was signed by Cao Derong, president of the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-products.

The event was witnessed by Prime Minister Tun Dr Mahathir Mohamad and his Chinese counterpart Li Keqiang at Diaoyutai Guest House here. 

China has been Malaysia's third largest trading partner in palm oil.

Last year, it purchased nearly two million tonnes of palm oil from Malaysia.

Dr Mahathir, who arrived here Wednesday (April 24) night, is on a five-day working visit.