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Malaysia has mentioned it should double palm oil exports to China to half 1,000,000 tonnes yearly because the south-east Asian nation strikes in opposition to European restrictions on a commodity used in every little thing from cookies to cosmetics.
The plan was made public on September 17 on the twentieth China-Asean Expo in the southern Chinese metropolis of Nanning, the place representatives of the international locations signed funding offers value 19.8bn ringgits ($4.2bn) to develop warehousing, logistics and waste-to-energy energy vegetation in Malaysia.
Among the offers is a 2.5bn-ringgit memorandum of understanding between Malaysia’s state-owned Sime Darby Oils International and Guangxi Beibu Gulf International Port Group, which is able to construct a buying and selling and distribution centre for refined palm oil in the Chinese metropolis of Qinzhou. The facility may have an annual transaction quantity of 500,000 tonnes to meet rising demand throughout the nation.
China is among the many prime importers of palm oil from Malaysia — the world’s second-biggest producer — alongside India, Turkey, Kenya and Japan.
Since 2009 China has been Malaysia’s prime buying and selling associate. Last 12 months the south-east Asian nation’s exports to China grew 9.4 per cent to 210.6bn ringgits.

This article is from Nikkei Asia, a worldwide publication with a uniquely Asian perspective on politics, the economic system, enterprise and worldwide affairs. Our personal correspondents and out of doors commentators from world wide share their views on Asia, whereas our Asia300 part supplies in-depth protection of 300 of the largest and fastest-growing listed firms from 11 economies exterior Japan.
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The two have constructed joint industrial parks in each international locations to enhance ties. China has moved to improve commerce with south-east Asia in the face of hovering tensions with the US and different developed economies.
“Malaysia is confident that our trade and economic relations with China will only grow stronger through various strategic initiatives,” Malaysian prime minister Anwar Ibrahim mentioned on the expo.
Anwar was quoted by Malaysian state information company Bernama as saying his nation would double palm oil exports to China from the present 250,000 tonnes yearly.
The palm oil deal will assist defend the sector, together with small farmers, Anwar added, as Malaysia and prime producer Indonesia combat stricter European Union laws.
In May the neighbours despatched a joint mission to Brussels to categorical their opposition to deforestation laws adopted final 12 months. The guidelines bar firms from promoting or exporting sure commodities throughout the European bloc — together with palm oil, soy, espresso, cacao and rubber — that have been grown on land deforested after 2020.
The palm oil sector has been broadly criticised by environmentalists who say huge plantations irritate deforestation and threaten wildlife habitats.
Florika Fink-Hooijer, the European Commission’s director-general for the atmosphere, instructed Nikkei Asia in June that the EU established a joint process drive with Malaysia and Indonesia to tackle considerations over the brand new laws and is anticipated to meet in Kuala Lumpur in December.
In the primary half of the 12 months, earnings at Malaysian palm oil firms took a success, with plantation earnings at state-owned FGV Holdings plunging 97 per cent to 13.8mn ringgits.
Domestic manufacturing from January to June fell 2.3 per cent to 8.1mn tonnes, in accordance to information from the Malaysian Palm Oil Board.
A model of this text was first revealed by Nikkei Asia on September 18. ©2023 Nikkei Inc. All rights reserved.
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