M’sia strikes palm oil barter trade deal with China

RAM also said the increase in Indian import duties on rival soybean oil in June 2018 was also expected to reverse the downtrend in palm oil exports for Malaysia and Indonesia.

BEIJING: Malaysia has struck another palm oil deal with China, says Primary Industries Minister Teresa Kok.

An additional one billion yuan (RM611mil) worth of palm oil, approximately 200,000 tonnes, will be exported to China in a barter trade, she said.

In return, Malaysia would be receiving construction services, natural resources products, along with civilian and defence equipment.

“I hope this cooperation will further promote palm oil trade between Malaysia and China,” said Kok after witnessing the signing of a Framework Cooperation Agreement between Persada Syabas and China’s Poly Technologies.

Poly Technologies is a subsidiary of China Poky Group Corporation –the largest Chinese state-owned company manufacturing military defence equipment. It also specialises in building construction.

Kok is currently on a palm oil promotion tour in three Chinese cities – Beijing, Hangzhou and Guangzhou.

“With 100 years of experience in developing the palm oil industry, Malaysia has made efforts to ensure that our palm oil is the best in the world, be it in quality, productivity and innovation,” she told the Chinese media here.

China is among major importers of Malaysian palm oil.

Kok also met Chinese Agriculture and Rural Affairs vice-minister Yu Kangzhen on the recognition of the Malaysian Sustainable Palm Oil (MSPO) certificate.

A memorandum of understanding was signed between Malaysian Palm Oil Certification Council and China Green Food Development Centre (CGFDC) to embark on mutual cooperation to certify palm oil, palm kernel oil and their related products exported to China as “green food”.

CGFDC is an agency of the Chinese government overseeing food quality.Consumer products that carry the Green Food label are recognised as safe, hygienic and environmentally friendly. They also enjoy premium retail prices nationwide.

“Once approved CGFDC will award Green Food certificates to Malaysian palm oil industry players, who are MSPO certified,” Kok said.

She said this was important to instil consumers’ confidence.