InfoSAWIT, KUALA LUMPUR – Malaysia and China have signed a strategic memorandum of understanding (MoU) to develop a sustainable palm oil supply chain in western China, marking an expansion of bilateral cooperation in green industry. The partnership emphasizes logistical efficiency and the use of palm oil in various industrial applications.
The MoU was signed between the Malaysian Palm Oil Board (MPOB) and China’s New Land-Sea Corridor Operation Co. Ltd. The collaboration aims to accelerate palm oil trade and distribution through the Qinzhou–Chongqing port corridor, connecting Malaysia to inland provinces such as Sichuan, Guizhou, and Shaanxi.
Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, said the partnership will foster a more efficient and sustainable palm oil network.
"Malaysia intends to leverage the Malaysian Sustainable Palm Oil (MSPO) certification—one of the world’s leading sustainability standards—to deepen institutional cooperation with China, especially in carbon labeling, biofuels, and eco-friendly materials," Chan was quoted as saying by New Straits Times on Monday (May 26, 2025).
Chan led the Malaysian delegation during the China-Malaysia Industry Cooperation Dialogue, held alongside the 7th Western China International Fair for Investment and Trade. The forum attracted over 40 companies from sectors such as food processing, personal care, and palm oil refining, exploring palm-based business opportunities in the Sichuan-Chongqing region.
Beyond logistics, Malaysia is partnering with Chongqing Jiaotong University to develop palm-based polyurethane acrylate for anti-corrosion coatings—part of a broader strategy to expand downstream palm oil use in China's industrial sector.
High-value palm oil derivatives, including red palm oil, palm stearin, and palm-based ice cream powder, were also promoted. Joint research projects are underway with Chinese firms to incorporate these derivatives into hotpot bases, snacks, and sustainable personal care products.
This cooperation underscores Malaysia’s commitment to transforming its palm oil sector through value-added innovation and broader international market access, while reinforcing palm oil’s role as a strategic green commodity in Malaysia–China relations. (T2)
