KUALA LUMPUR: Malaysia is intensifying efforts to expand palm oil usage in western China such as in snack food, hotpot seasoning, personal care and chemicals.
The move comes as Malaysia seeks to strengthen its foothold in China amid a drop in palm oil exports to the country last year.
One of the key factors that led to the decline is due to an increasing demand for soybean in China as the price of soybean oil is now cheaper than palm oil, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.
Additionally, he said that demographic and consumer behaviour changes in China, as a result of an ageing population and shifting dietary preferences, have led to a reduced consumption of fried food.
Despite these challenges, Chan said Malaysia’s palm oil sector remains strong, particularly in niche markets.
“Malaysia’s palm oil exports to China are still resilient. We have seen a 40% increase, with a double-digit growth in palm kernel oil exports, which are mainly used in China’s oleochemical industry,” he said.
To further expand Malaysia’s presence in China’s central and western regions, particularly in second and third-tier cities, Chan will be visiting Chengdu and Chongqing to explore opportunities in food processing, personal care and chemicals.
To sustain growth, he said Malaysia is focusing on strengthening trade relations with China through continuous engagement.
“We welcome Chinese food processors, restaurant chains, Fast-Moving Consumer Goods brands and e-commerce platforms to collaborate in promoting palm oil and its derivatives, broadening market opportunities and enhancing Malaysia-China trade,” he said.
He spoke of the high quality products and the reliable supply chain in Malaysia.
“Through the Malaysian Sustainable Palm Oil certification, we ensure environmentally responsible practices and lower carbon emissions.
“As a global leader in sustainable palm oil production, Malaysia provides a reliable and ethically sourced supply for Chinese enterprises,” he said at the Malaysia-China 30 CEOs Forum on Oils and Fats on Sunday.
The forum, organised by the Plantation and Commodities Ministry in collaboration with Beijing Heyirong Invest Group and the China-Malaysia Qinzhou Industrial Park, brought together key industry players.
Beijing Heyirong Invest Group, a major palm oil importer in China, handles 300,000 tonnes of refined, bleached, and deodorised palm olein and stearin annually.
During a presentation on “Malaysian Palm Oil Industry Performance 2024 & Prospects for 2025”, Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir projected stable palm oil exports to China at about three million tonnes this year.
There is a shift towards high-value palm-based products, including palm shortening, cocoa butter substitutes and oleochemical derivatives, to meet China’s growing demand for premium imports, he said.
