KUALA LUMPUR: Malaysia’s palm oil exports to China are projected to stay strong in 2025, even with their price premium over alternative oils and shifting consumer preferences in the Chinese market, said Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities.
China remains Malaysia’s second-largest palm oil importer after India. In 2024, Malaysia’s palm oil and palm-based exports to China totalled RM10.57 billion, with palm kernel oil exports rising by 40 per cent, primarily driven by demand from China’s oleochemical industry.
“As a global leader in sustainable palm oil production, Malaysia offers a reliable and ethically sourced supply for Chinese enterprises.
“Malaysian palm oil is renowned for its high quality and versatility. Refined palm oil, speciality fats, and oleochemical derivatives are widely used in food processing, animal feed, personal care products, bio-based chemicals, and green energy.
“With China’s increasing demand for high-protein, high-energy animal feed, palm oil plays an essential role in supporting the livestock industry, while its stability and functional properties make it a key ingredient in China’s bakery, fast food, dairy, cosmetics, and home care industries,” Chan added following the Malaysia-China 30 CEOs Forum on Oils and Fats, held on Sunday.
The forum was organised by the Ministry of Plantation and Commodities in collaboration with Beijing Heyirong Invest Group, one of China’s largest local palm oil importers.
Meanwhile, Malaysian Palm Oil Board (MPOB) director-general Ahmad Parveez Ghulam Kadir projected that palm oil exports to China would remain stable at around 3 million tonnes in 2025.
However, he noted significant changes in the composition of exports, with increased shipments of high-value palm-based products like palm shortening, cocoa butter substitutes, and oleochemical derivatives. This shift aligns with China’s growing demand for high-value-added imports to meet evolving industrial and consumer needs.
Ahmad Parveez also highlighted the importance of strategic research and development collaborations between Malaysia and China in driving innovation in food, industrial applications, and green economy initiatives.
These partnerships will further integrate Malaysian palm oil into China’s expanding value-added supply chain, he said.
He said that Malaysia is also diversifying its palm oil exports beyond food applications into sectors like aquaculture and aquatic feeds, where palm oil derivatives are increasingly valued for their nutritional and sustainability benefits.
Additionally, the demand for eco-friendly cleaning and industrial products is expected to drive further growth in palm oil-based surfactants, he said.
“The ministry and agencies will continuously collaborate closely to address environmental concerns while also promoting economic stability and social responsibility within the industry, ultimately fostering a more sustainable and balanced future,” he added.
Source: New Straits Times
