Malaysia has struck a palm oil barter deal with China, in which it will export an additional ¥1bn (US$144M) worth of palm oil (about 200,000 tonnes) to the country, said Primary Industries Minister Teresa Kok.
In return, Malaysia would be receiving construction services, natural resources products, as well as civilian and defence equipment, The Star newspaper wrote on 1 June.
“I hope this cooperation will further promote palm oil trade between Malaysia and China,” said Kok after witnessing the signing of an agreement between Malaysian wholesale trade firm Persada Syabas and China’s military equipment trader Poly Technologies.
Malaysia had been trying to reduce its palm oil stockpile, which hit its highest level in at least 19 years in December 2018, according to Reuters.
In April, China agreed to buy 1.9M tonnes of palm oil from Malaysia over the next five years and invest at least RM2bn (US$477M) in a bio-jet fuel plant.
China is the world’s second largest importer of palm oil, after India.