Portsim bolsters Malaysia’s presence in China’s high-value palm oil market

Malaysia’s strategic presence in China’s high-value palm oil market has been significantly bolstered by the work of the Palm Oil Research and Technical Service Institute of Malaysia (Portsim) in Shanghai.

Plantation and Commodities Ministry said Portsim is a vital institution that continues to shape the future of palm oil trade through science, innovation and bilateral cooperation.

Speaking at the 20th anniversary celebration dinner of Portsim on Sunday evening at the Qiantan Shangri-La Hotel in Shanghai, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin highlighted Portsim’s critical role as a catalyst for science-driven economic diplomacy.

He said over the past two decades, Portsim has contributed meaningfully to the sustainable growth and diversification of Malaysian palm oil exports to China.

“Malaysia’s investment in research, development, and commercialisation (R&D&C) through Portsim has produced concrete outcomes – not only in terms of boosting export value, but also in reinforcing the image of Malaysian palm oil as a high-quality, reliable raw material for various downstream industries in China,” he said in a statement today.

R&D&C activities spearheaded by Portsim directly contributed to export earnings worth RM357.98 million in 2024.

Since its establishment in 2005, the institute has played a central role in catalysing palm oil innovation through partnerships with Chinese universities, research institutions, and private enterprises.

Among its notable contributions are the new formulation of palm-based products for food, oleochemical, and animal feed applications tailored to the Chinese market; the development of new product innovations; and the provision of technical support to local industries.

Chan said Portsim has been instrumental in expanding the use of Malaysian palm oil in key consumer segments such as fast food, bakery, soaps and detergents, cosmetics, and animal feed and pet food.

“Its technical advisory services have enhanced industry confidence in Malaysian palm oil as a premium, versatile input with a broad range of applications across food and non-food sectors.

“In 2024 alone, Malaysia exported nearly RM10.6 billion worth of palm oil products to

China, accounting for more than half of Malaysia’s total agri-commodity exports to the country,” he noted.

Tags: China, exports, Malaysia, palm oil, Market