PLANTATION AND COMMODITIES
May-June. 2025 | @ AGROBiz
PLANTATION AND COMMODITIES
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Boosting palm oil trade with China
� Malaysia is expanding its palm oil trade with China through strategic engagement in key cities to strengthen market access and investment opportunities.
� The Palm Oil Research and Technical Service Institute of Malaysia( PORTSIM) drives innovation and boosts demand for Malaysian palm oil in China.
� Malaysia uses Malaysian Sustainable Palm Oil( MSPO) certification to support China’ s green development goals.
MALAYSIA is strengthening its position in China’ s growing palm oil market. In 2023, Malaysia exported RM10.57 billion worth of palm oil products to China, which accounts for 10 per cent of its total palm oil export value.
To build on this momentum, Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, led a trade mission to China, covering Shanghai, Chengdu, and Chongqing.
The visit aimed to promote Malaysian palm oil, strengthen trade ties, and explore new opportunities, particularly in western China, where demand for sustainable raw materials is increasing.
A key event during the mission was the 20th anniversary of the Palm Oil Research and Technical Service Institute of Malaysia( PORTSIM) in Shanghai. PORTSIM, the research arm of the Malaysian Palm Oil Board( MPOB) in China, has played a crucial role in advancing product innovation and boosting demand for Malaysian palm oil.
Its efforts in research, development, and commercialisation led to export earnings worth RM357.98 million in 2024 alone. By focusing on food, cosmetics, oleochemicals, and animal feed, PORTSIM helps promote Malaysian palm oil as a versatile, high-quality product.
STRATEGIC COLLABORATION
In Chongqing, Malaysia and China signed a Memorandum of Understanding to develop a palm oil supply chain focused on western China. This region is seen as a key growth area, with strong logistics links via the Qinzhou Port-Chongqing route.
Malaysia is also collaborating with Chongqing Jiaotong
STRENGTHENING TIES: Datuk Chan Foong Hin took the opportunity to meet with fellow Malaysians residing in Shanghai and celebrate PORTSIM’ s 20th anniversary.
University to develop palm oil-based anticorrosive coatings, thereby expanding the industrial applications of the commodity.
Malaysia’ s palm oil exports are guided by the Malaysian Sustainable Palm Oil( MSPO) certification, one of the world’ s highest sustainability standards. This aligns with China’ s green development goals and strengthens confidence in Malaysia’ s supply.
“ Palm oil is more than a commodity. It is a bridge for sustainable and innovative collaboration.
“ We aim to expand our footprint across China’ s inland provinces through sustainable, high-value innovations,” Chan said.
With strong partnerships and a clear focus on sustainability and innovation, Malaysia is positioning itself as a trusted supplier of palm oil in one of the world’ s most dynamic markets.
MICF 2025 marks cocoa breakthrough
MALAYSIA is setting a renewed course for its coca industry, focusing on sustainability, innovation, and greater value creation.
This strategic direction was unveiled during the Malaysian International Cocoa Fair( MICF) 2025, held from 24 to 27 May at the Sabah International Convention Centre in Kota Kinabalu.
Datuk Seri Johari Abdul Ghani, Minister of Plantation and Commodities, delivered a keynote address titled“ Cocoa Outlook: Opportunities and Challenges,” where he outlined Malaysia’ s vision for a high-impact and globally competitive cocoa sector.
Malaysia aims to increase cocoa bean production while strengthening its position among the world’ s top five cocoa grinders. The country is shifting its focus from quantity to quality by prioritising sustainable practices and producing high-value cocoa products.
A key initiative in this effort is the National Cocoa Traceability System, which currently covers 40 per cent of domestic cocoa production. This system complies with the European Union Deforestation Regulation( EUDR) and aligns with the Malaysian Standard Premium Cocoa( MSPC) framework.
These initiatives align with Malaysia’ s broader environmental goals, including achieving net-zero carbon emission by 2030 and preserving at least 50 per cent of forest cover.
DRIVING INNOVATION
To meet the growing global demand for premium cocoa, Malaysia is promoting the cultivation of fine-flavour, single-origin, and organic verities.
“ We’ re embarking on sustainable plantation practices that will yield higher returns and premium prices for farmers in the future while protecting our environment and forests,” Johari said.
The government is also investing in cocoa cluster programmes and cooperatives to support rural communities and ensure farmers benefit from the premium cocoa value chain.
Research and development are central to Malaysia’ s cocoa ambitions. The Malaysian Cocoa Brand( MCB) is at the forefront of advancements in cocoa breeding, post-harvest handling, product development, and quality control.
Johari noted that these upstream efforts have already led to a 65 per cent increase in cocoa bean production last year.
MICF 2025 attracted over 1,000 participants from 16 countries, including more than 500 researchers and academics. Organised by MCB, the event featured exhibitions, conferences, cultural activities, business matching sessions, and technical discussions.
As a major cocoa-producing region, Sabah played a crucial role in hosting the fair. Johari expressed appreciation to the Sabah State Government for its strong commitment to developing Malaysia’ s cocoa sector.- @ AGROBiz