SHANGHAI (Nov 13): Malaysia, via the Malaysian Palm Oil Board (MPOB), will continue its research and development (R&D) to increase palm oil-based value-added products for companies in China to export to Muslim regions within the country, Deputy Prime Minister Datuk Seri Fadillah Yusof said.
Fadillah, who is also the Plantation and Commodities Minister, said that to date, several products are being commercialised in China, thanks to the Palm Oil Research and Technical Service Institute of Malaysian Palm Oil Board (Portsim).
“So far, we are very satisfied with what has been produced. Now, we need to look at how we can expand products developed by Portsim, in line with China’s tastes and market requirements.
“Portsim has succeeded in providing solutions and assistance to industry players by transforming their production methods through the use of palm oil,” he told the media during his visit to the research institute here on Sunday.
Fadillah said that Chinese companies previously used other raw materials for their products, but now, in order to cater to a much larger market, they are replacing these with palm oil, which is halal and more suitable for the global Islamic market.
He said that the research institute is looking into health products based on the versatile crop tocotrienol, moving forward.
“We will also meet with China’s agriculture minister to seek recognition of the Malaysian Sustainable Palm Oil (MSPO) certification for their products,” he added.
Founded in 2005, Portsim is a branch of the MPOB in China that aims to develop, expand and advance the Malaysian palm oil market in China, and provide technical support and advisory services for related enterprises.
Fadillah is on his maiden official visit to China from Nov 12-19 to strengthen cooperation in R&D, as well as capacity building in the field of commodities, especially in promoting the MSPO certification scheme at the global level.
The export value of palm-based products to China in 2022 totalled RM16.41 billion, while the export value of Malaysian palm oil to the country in the same year was RM8.44 billion.
Meanwhile, Portsim general manager Yoong Jun Hao shared that the research institute has received China’s accreditation from the China National Accreditation Services (CNAS) and the China Inspection Body and Laboratory Mandatory Approval (CMA).
“This is a recognition to our labs that we also fulfil all the requirements in China in terms of their standards and quality.
“In addition, we are here to help serve the industry by expanding their markets into higher value addition segments in China by selling more downstream products made with Malaysia’s palm oil products through our R&D and commercialisation activities.
“Through this, we can help our industries move into the downstream segment to produce more value-added products, and this will help secure loyal customers in China and, at the same time, help our country to expand further our palm oil market,” he said.
Yoong added that yearly, Portsim would create three to eight new products and that vegan meat is among this year’s new products.
“We foresee the vegan market growing, especially in China and Europe; therefore, this product has a huge potential,” he added.
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