Malaysia China Trade Group Ink Deal To Stabilise Palm Oil Supply Chain





The Malaysian Palm Oil Board (MPOB) has signed a memorandum of understanding (MoU) with the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce, and Animal By-products (CFNA) to enhance trade and cooperation in the palm oil sector between both countries on palm oil supply chain stabilisation fields.
The MoU was signed in Beijing, China on April 1, 2023 by MPOB deputy director-general (research and development) Zainab Idris and CFNA president Cao Derong. 
“China wishes to work with Malaysia in order to secure palm oil supply to the country. This MoU will help gain China’s confidence in Malaysian palm oil. It will also further secure Malaysian palm oil’s position and thus regain our market share in the Chinese market,” MPOB said in a statement today.
It said the main content of the MoU included jointly promoting the supply chain stability of palm oil in both countries, joint promotion of palm oil and the Malaysian Sustainable Palm Oil (MSPO) for food, non-food, biofuel, and feed applications and consumptions in China.
It would also jointly promote the exploration, designing, and implementation of new technologies such as artificial intelligence, fifth-generation mobile network (5G), internet of things, and autonomous vehicles in oil palm plantation. 
MPOB said the MoU will also facilitate China’s participation in the technology exploration in oil palm mechanisation in Malaysia, which would help to increase productivity and reduce reliance on human labour in the plantation.
China is Malaysia’s important trading partner for palm oil and palm products after India. The export of palm oil and palm products to China in 2022 was 3.14 million tonnes valued at RM14.86 billion. 
- Bernama


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