Malaysia’s Palm Oil Exports to China Down 2.3% in 2024

Malaysia and China will continue to strengthen cooperation in palm oil supply and market expansion, said Deputy Minister of Plantations and Commodities Datuk Chan Foong Hin. The two countries will work together to upgrade the industry and expand the use of palm oil in food, oleochemicals and renewable energy. This was stated by Datuk Chan Foong Hin in his speech at the official opening of the International Oils and Fats Forum. The forum was organized by the Ministry of Plantations and Commodities jointly with Beijing Heyirong Invest Group and the China-Malaysia Qinzhou Industrial Park with the support of the Dalian Commodity Exchange (DCE).

Chan also said that the ministry aims to accelerate the commercialization of palm oil products in Chinese markets through joint development with Chinese companies in the food processing, fast-moving consumer goods (FMCG) and renewable energy sectors. Meanwhile, Malaysian Palm Oil Board (MPOB) CEO Ahmad Parviz Ghulam Kadir said the premium for palm oil over soybean oil will still hinder growth, but remained optimistic about Chinese purchases.

Citing the industry’s year-end performance, Chan noted that Malaysia’s palm oil and palm oil-based product exports to China will reach $2.39 billion in 2024. Palm kernel oil exports have increased by 40%.

“If exports do not increase (this year), we hope that we can at least maintain the export volumes we had last year,” he said. Malaysia’s palm oil exports to China in 2024 were 1.39 million tonnes, down 5.3% from the previous year, according to MPOB.

Earlier, India’s annual palm oil imports were forecast to fall below the share of other competing oils for the first time, also due to the rising premium on soybean and sunflower products, which is pushing processors towards more affordable alternatives.

Tags: China, Malaysia, palm oil