MALAYSIA EXPECTS RISE IN PALM OIL EXPORTS TO CHINA THIS YEAR

From Samantha Tan Chiew Ting

BEIJING, June 2 (Bernama) -- Malaysia's palm oil exports to China are
expected to increase this year, driven by growing demand and positive signs in
the Chinese economy, says Plantation Industries and Commodities Minister,
Bernard Dompok.

"Everybody is positive on the growth of the Chinese economy. I think the
demand for palm oil will come from countries that have growth rates like China's
and India's," he told reporters after officiating at the third Malaysia-China
Palm Oil Trade Fair and Seminar (POTS 2010) here Wednesday.

Last year, Malaysia exported 4.03 million tonnes of palm oil valued at
US$2.81 billion (US$1=RM3.27) to China.

Dompok said in terms of imports by China, palm oil accounted for 60 per cent
of the total oils and fats, adding that its consumption would also be better
this year.

"Malaysian palm oil has enjoyed the recognition and acceptance by the
Chinese consumers since it was first introduced in the eighties.

"Since then, palm oil consumption in China has increased tremendously to the
current level of 6.08 million tonnes annually," he said.

He said palm oil has the potential to further enhance its use for both food
and non-food purposes, taking into account its cost-competitiveness vis-a-vis
the other competing oils.

"I encourage the business communities in both Malaysia and China to continue
explore new areas to strengthen existing business ties.

"I believe there are still more opportunities available for the private
sectors in both countries to redefine the business approaches to form
partnerships and strategic alliances to discover new avenues for expanding the
edible oil and palm oil business," he said.

POTS 2010 is the 14th of its global series since its introduction in 2006.

It offers opportunities to explore new areas to further cooperation and
rejuvenate business linkages and for a continuous progress of bilateral ties
between Malaysia and China.

The event is jointly organised by Malaysian Palm Oil Council and Malaysian
Palm Oil Board, in collaboration with China's Development and Exchange Centre of
State Grain Administration.

-- BERNAMA