BEIJING (July 12): Malaysia is committed to supply China with sustainable palm oil, Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said on Friday.

He also hoped the two countries could cooperate to establish a shared consensus in engagements with the European Union (EU), particularly on matters related to the European Union Deforestation Regulation (EUDR).

Malaysia is addressing four challenges presented by the EUDR by producing palm oil according to sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which was made mandatory in 2019, Chan said in concluding remarks wrapping up his five-day working visit here.

“Malaysia is fully committed to ensuring that all products exported to China meet the stringent requirements of the EUDR. Our adherence to the MSPO, along with the actions taken to align with EUDR criteria, ensures that our palm oil is produced sustainably and responsibly. China can be assured of the quality and sustainability of Malaysian products, as we continuously strive to uphold the highest environmental and social standards,” he said.

During his visit, he also witnessed the signing of four memoranda of understanding (MOUs) between Malaysian palm oil players and businesses in China, valued at an estimated RM231.9 million at the 15th China International Cereals and Oils Industry Summit in Nanjing on July 11.

The MOUs signed were between Kuala Lumpur Kepong Bhd (KL:KLK) and BOCE Trade Service for tocotrienol exports to China; between Taobao and Able Perfect Group, Taobao and Sawit Kinabalu, and JF Nutritech and Palmort Food Tech (Shanghai) for palm olein, palm stearin and red palm oil.

Chan’s mission also organised meetings and business matching sessions between Malaysian companies and businesses in China.

Malaysian companies that participated included Able Perfect, Tek Guan Group, Sawit Kinabalu, JF Nutritech, Saraspice Sdn Bhd. Meanwhile, Chinese companies that took part included Juneyao Group, Alibaba Auction Business, China Light Industry Daily Chemicals Science and Technology, Want Want Holdings, Tingyi (Cayman Islands) Holding, Xinjiang Guotou Dinging Industries, China Enterprise United Oils, Yihai Kerry Arawana Holdings, Bunge Asia and BOCE.

“I’m satisfied with the B2B [business-to-business] achievements during this visit. For G2G [government-to-government] cooperation, we hope to conclude an MOU with our counterpart this year,” he said.

Talks to establish a bilateral mechanism between his ministry and China's Ministry of Agriculture and Rural Affairs started during Deputy Prime Minister Datuk Seri Fadillah Yusof’s stint as the Plantation and Commodities Minister last year.

Chan also spoke at the cereals and oils summit which was organised by the China Chamber of Commerce for Import/Export of Foodstuffs, Native Produce, and Animal By-products (CFNA).

In 2023, Malaysia exported 1.47 million tonnes of palm oil and 1.59 million tonnes of other palm products to China. “This trade relationship is crucial for both our countries, supporting the development of our food and non-food industries,” he said.

“This year marks the 50th anniversary of diplomatic relations between China and Malaysia, and we are ready to elevate our comprehensive strategic partnership, especially in the palm oil trade,” he said in his keynote address.

Chan added that Malaysia will continue to engage with stakeholders to address misconceptions about palm oil and promote its health and functional benefits. He also appealed to China to support Malaysia’s efforts in addressing criticisms and allegations of deforestation against the commodity.