29/04/2011 (Channel News Asia) - Chinese Premier Wen Jiabao has said China will continue its steady import of crude palm oil from Malaysia.

He gave the commitment after meeting Malaysian Prime Minister Najib Razak in Putrajaya on Thursday, on the second of his two-day working visit.

Both leaders witnessed the signing of a series of agreements ranging from trade, investment, education, infrastructure and telecommunication.

It is Premier Wen's second official visit to Malaysia.

The 68-year-old led a delegation of 118 members, including four ministers.

They were given a warm welcome by Malaysia Prime Minister Najib Razak at his office in Putrajaya.

The leaders met for over an hour and pledged to take bilateral relations to new heights.

Prime Minister Najib said: "We have every confidence that given his strong leadership, China will continue to prosper and provide very strong impetus in terms of global economic growth. I am also appreciative of PM Wen's commitment that China will continue to buy in big quantities Malaysian palm oil and palm oil products."

Last year, China imported 3.4 million tonnes of palm oil from Malaysia, representing a 12 per cent drop from a year ago. China is Malaysia's largest trading partner. Two-way trade reached US$75 billion last year. Malaysia, on the other hand, is China's top trading partner in ASEAN for three consecutive years."

Chinese Premier Wen said: "Even though China has long been running a trade deficit with Malaysia, we have no complaints. China agrees to continue steadily importing Malaysia's crude palm oil."

The two sides signed a series of agreements to expand and deepen bilateral economic and trade cooperation including to further facilitate transactions to be settled in local currencies.

He later opened a Sino-Malaysia trade and economic cooperation forum in Kuala Lumpur and met business leaders.

Fui Soong, CEO of the Centre for Strategic Engagement, said: "What people really want to see is a significant volume of trade increase between China and Malaysia, not just in commodities. What you see is the rise in trade between two countries is very centered on commodities, SMEs are not benefiting from the rise in trade."

China and Malaysia are also looking to cooperate in education, including a joint effort to establish a Chinese Studies Centre in the University of Malaya.

Premier Wen visited the country's oldest university a day earlier and held a lively exchange with students there.

During his time in Malaysia, Premier Wen also met Former prime minister Mahathir Mohamad.