Under the MOU, both sides will actively respond to “Belt and Road” initiative, improve palm oil trade between China and Malaysia, and jointly research, develop and promote special oils and healthy palm oil products with high added-value in Chinese market.Mr. Yu Xubo noted this is an in-depth partnership to boost growth and innovation of the industry based on complementarity and win-win against the major backdrop of promoting practical cooperation between China and Malaysia for the joint construction of “Belt and Road”. Based on years of mutual cooperation and confidence, China’s largest G&O and food enterprise COFCO Corporation and Malaysia’s largest palm oil producer and service provider Sime Darby Plantation will team up to conduct closer cooperation in the application of palm oil. By aligning its extensive market network and dominant market position in China with Sime Darby’s rich and steady palm oil supply capacity and strong R&D capability in special oils, COFCO Corporation will continue to foster new growth points, boost the development of two countries’ agro-product processing sector, continuously expand cooperation to achieve incremental changes, contribute to mutual win-win, and work for the wellbeing of people of both countries.
Palm oil is currently a type of plant oil with the largest production, consumption and trade volume in the world. As China’s largest ASEAN trade partner and the first country to respond to “Belt and Road” initiative along the route, Malaysia is one of the largest global palm oil producers and exporters, accounting for 39% of palm oil production and 44% of palm oil export in the world. Now China has become the world’s largest palm oil importer and Malaysia’s second largest palm oil export destination.As one of Malaysia’s largest state-owned enterprises and the world’s largest palm oil plantation company in terms of plantation acreage, Sime Darby Plantation has more than 600,000 hectares of planted area. It is also the world's largest producer of Certified Sustainable Palm Oil (CSPO). Sime Darby Plantation’s R&D Center is one of the world’s most advanced palm oil research institutes in the world.
Primary Industries Minister Teresa Kok Suh Sim, Ambassador of Malaysia to the People's Republic of China Zainuddin Yahya, COFCO General Office director Liu Yun, Capital Operation Department director Qing Lijun, COFCO Oils & Oilseeds chairman Dong Wei, and China Tea general manager Wang Guiqing also attended the signing ceremony.