Malaysian Plantation Industry and Commerce Minister Douglas Uggah Embas stated that Malaysia hopes to account for 70% of China's palm oil imports, while Malaysia currently accounts for 58.8% of China's total palm oil imports. China is the export destination of Malaysian palm oil products, accounting for 20.4% of Malaysia's global exports. Palm oil is the second most consumed oil product in the Chinese market, after soybean oil. In 2013, the Chinese market consumed 6.3 million tons of palm oil, accounting for 17.7% of the total vegetable oil consumed in the Chinese market. In the first quarter of 2014, Malaysia exported a total of 1.3 million tons of palm and its by-products to China, with a total value of 3.5 million ringgit (US$1.07 million).
Uggah said that palm oil trade is helpful to the economies of both countries, not just to Malaysia. Malaysia's supply of palm oil to China is conducive to the development of China's food industry. With the rapid development of China's industry, palm oil-based oleochemicals can further meet the needs of the Chinese market.
In order to stabilize the price of natural palm oil, the Malaysian government decided to exempt natural palm oil export taxes in September and October. Lee Yeow Chor, chairman of the Malaysian Palm Oil Association, said that the government's decision to stop levying export taxes on natural palm oil will also have a boost. In the first 10 days of September, palm oil exports increased by 30% compared to the same period last month.