Malaysia seeks to regain palm oil market share in China
27/11/2025 (New Straits Times), Petaling Jaya - Malaysia's palm oil exports to China declined nearly 39 per cent in the first 10 months of the year due to logistics challenges and pricing pressures, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He attributed part of the decline to rising palm oil prices, which have surpassed soybean oil, making the latter the preferred choice for Chinese buyers.
"For the first time, the price of our palm oil has increased and is more expensive than soybean oil. In China, soybean oil is one of the edible oils that is imported for the benefit of the people and their industry," he told reporters at the Malaysian Palm Oil Council (MPOC) Industry Dialogue with Chinese Buyers.
The dialogue sessions provide a platform for industry players to engage openly and understand each other's perspectives. Johari said such interactions help strengthen long-term trust and ensure policies remain aligned with market realities.
He noted that China has been a key and strategic market for Malaysia, maintaining its position as one of the country's top palm oil export destinations for over a decade.
"However, our exports to China have fallen by almost 39 per cent in the first ten months of this year. This sharp decline suggests deeper challenges relating not only to competitiveness and logistics but also to pricing dynamics and market positioning.
"The purpose of this dialogue is to understand clearly how Malaysia can regain its competitiveness and restore its long-established position in the Chinese market.
"As highlighted, this group collectively accounts for roughly 2.5 million tonnes of China's palm oil requirements. Your perspectives carry significant weight in shaping how Malaysia strengthens its competitiveness moving forward," said the minister in his opening remarks.
He said that Malaysia will continue to uphold transparent and predictable export policies to ensure that the actions do not disrupt the interests of its major trading partners.
"We also welcome continuous dialogue to better align expectations on pricing trends, market developments, and long-term supply planning."
The MPOC hosted a trade networking visit for 37 Chinese buyers from Nov 25 to 27, 2025. Representing major food and non-food sectors across China, the delegation participated in a series of engagements aimed at expanding Malaysian palm oil exports and reinforcing confidence in Malaysia's palm oil supply chain.