PETALING JAYA: Malaysia is seeking to restore its competitiveness and long-standing position in China’s palm oil market.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani noted that China has been a key strategic market for Malaysia, consistently ranking among the country’s top palm oil export destinations for over a decade.
“However, our exports to China have fallen by almost 39 per cent in the first 10 months of this year. This sharp decline suggests deeper challenges relating not only to competitiveness and logistics but also to pricing dynamics and market positioning,” he told reporters at the Malaysian Palm Oil Council (MPOC) Industry Dialogue with Chinese Buyers.
Data from the Malaysian Palm Oil Board shows that Malaysia exported 1.39 million tonnes of palm oil to China in 2024, a 5.3 per cent decline from 2023. China continues to be Malaysia’s second-largest palm oil market after India, with other significant export destinations including Kenya, the Philippines, and Pakistan.
Johari said palm oil exports to China were affected by logistical challenges and pricing pressures.
He added that the drop in exports was partly due to rising palm oil prices, which have surpassed soybean oil, making soybean oil the preferred choice for Chinese buyers.
“For the first time, the price of our palm oil has increased and is more expensive than soybean oil. In China, soybean oil is one of the edible oils that is imported for the benefit of the people and their industry,” he said.
The dialogue sessions offer a platform for industry players to engage openly, build trust, and align policies with market realities. Johari said the discussions aim to explore ways for Malaysia to regain competitiveness and strengthen its long-standing presence in the Chinese market.
“This group collectively accounts for roughly 2.5 million tonnes of China’s palm oil requirements. Your perspectives carry significant weight in shaping how Malaysia strengthens its competitiveness moving forward,” said the minister in his opening remarks.
He said that Malaysia will continue to uphold transparent and predictable export policies to ensure that the actions do not disrupt the interests of its major trading partners.
“We also welcome continuous dialogue to better align expectations on pricing trends, market developments, and long-term supply planning.”
The MPOC hosted 37 Chinese buyers from Nov 25 to 27, 2025, representing major food and non-food sectors. The delegation engaged in discussions aimed at expanding Malaysian palm oil exports and reinforcing confidence in the country’s supply chain.
Source: New Straits Times
