M’sian, Chinese companies sign palm oil deals worth US$891 million

KUALA LUMPUR: Four Malaysian companies will be exporting 1.62 million tonnes of palm oil, worth US$891 million to China, under purchase intent agreements signed with three Chinese counterparts.

Yantai Tianmao Edible Oil Co Ltd has agreed to buy 100,000 tonnes of refined, bleached and deodorized (RBD) palm stearin from Sime Darby Plantation Bhd, while Yihai Kerry (Shanghai) International Trading Co Ltd will purchase 1.3 tonnes of RBD palm olein from PGEO Marketing Sdn Bhd.

The third agreement is between Yizheng Fangshun Industry Ltd and Cacao Paramount Sdn Bhd and SOP Edible Oils Sdn Bhd for the purchase of 120,000 tonnes of RBD palm stearin and 100,000 tonnes of RBD palm olein respectively.

The agreements were signed by the companies here today, witnessed by Primary Industries Minister Teresa Kok Suh Sim, who said the purchase would reduce Malaysia’s palm oil stockpile and boost the commodity’s price.

The signing was held on the sidelines of the Malaysia-China Palm Oil Business Forum here yesterday.

“This signing is also a follow-up to the consensus reached during a meeting between Malaysia and China in August 2018 to increase China’s uptake of Malaysian palm oil by 500,000 tonnes,” she told reporters after officiating the Forum.

China’s Ambassador to Malaysia, Bai Tian said the country may be buying more of Malaysia’s palm oil and palm oil products in the future. - Bernama