Malaysia said that it has signed a memorandum of understanding (MOU) with a trade group supported by the Chinese government in order to expand palm oil trade and collaboration.
The Chinese Chamber of Commerce of Import and Export of Foodstuffs, Native Produce, and Animal By-Products, according to the Malaysian Palm Oil Board, will assist Malaysia reclaim market share in the nation with the largest population.
The second-largest producer of palm oil in the world, Malaysia, and the second-largest consumer, China, will collaborate to promote the use of Malaysia's sustainable palm oil in China as well as the development and application of cutting-edge technologies like artificial intelligence in oil 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 memorandum "will help gain China’s confidence towards Malaysian palm oil".
The agreement, according to the statement, "will promote China's participation on the technology exploration in Malaysia's oil palm mechanisation, which will help to boost productivity and minimise reliance on human labour in the plantation."
China became Malaysia's second-largest trading partner for edible oil after India in 2022 after receiving 3.14 million tonnes of palm oil and other palm products from Malaysia.