04/06/2010 (Bernama), Beijing - Malaysia has assured palm oil consumers in China that it will continue to provide latest information on the benefits of the commodity based on research and development programmes.

"This will facilitate the business community in China to strengthen the use of palm oil for both food and non-food purposes," said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok at the third Malaysia-China Palm Oil Trade Fair and Seminar (POTS 2010).

Dompok is on a six-day working visit to Beijing and Shanghai from June 1. The minister visited China's Ministry of Commerce, State Administration of Grains and China National Cereals, Oils and Foodstuffs Corporation (COFCO).

The visit is aimed at strengthening bilateral trade and investment ties between Malaysia and China in the context of palm oil trade and other commodities like rubber and timber.

The delegation comprises ministry officials, Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Council (MPOC), Malaysian Rubber Board (MRB) and Malaysian Timber Council (MTC).

Dompok will also open a seminar today hosted by MTC in Shanghai and also visit the Ningbo GoodTime Science and Technology Co Ltd, a leading manufacturer and trader of all kinds of standard and custom-moulded rubber products.

The minister said Malaysia would ensure palm oil supplied to China adhered to food agriculture and sustainable practices.

"I believe the long-term business relationship between Malaysian palm oil exporters and Chinese buyers was developed not just through supplying various types of palm pol products but also providing solutions to consumers.

"This has differentiated Malaysia from being a mere palm oil supplier and palm oil products into a partner to strengthen market opportunities for buyers in China," he said.

Dompok also said one of the approaches taken by the Malaysian suppliers in achieving this objective is through participation in the development of local downstream oils and fats via strategic joint ventures and investments.

"Bringing the production base closer to consumers allows for flexibility in service and providing quicker solutions in meeting the requirement and needs of parties involved in the trade," he said.

Dompok said there were opportunities to explore new areas for further cooperation and rejuvenate business linkages to ensure continuous progress in bilateral ties between the two countries.

"There are opportunities to explore investments in downstream higher value- added palm derivatives such as oleochemicals, pharmaceuticals, processed foods, speciality products and even consumer brands," he said.

The commitment to work together would enable oils and fats business to overcome challenges, including pressures from environmentalists and would continue to reap huge benefits arising from increasing demand for supply of palm oil and its derivatives.