Malaysia said on Sunday, April 2, that the country has signed a memorandum of understanding with a Chinese government-backed trade association to enhance palm oil trade and cooperation.
The Malaysian Palm Oil Board said the partnership will help Malaysia regain market share in the country.
Malaysia, the world’s second-largest palm producer, and China, the world’s second-largest buyer, will together promote the use of Malaysia’s sustainable palm oil. A part of the cooperation is to design and implement new technologies such as artificial intelligence in palm plantations.
“China wishes to work with Malaysia in order to secure the palm oil supply to the country,” the Malaysian board said in a statement.
“The agreement will also facilitate China’s participation on the technology exploration in the mechanization in Malaysia. This will help to increase productivity and reduce reliance on human labor in plantations,” the statement said.
In 2022, Malaysia exported 3.14 million tons of palm oil and palm products to China, making China its most important trading partner for palm oil after India.