The palm oil industry in Malaysia is a very important sector as it plays a strong part in the economy. The industry has been losing lately with a lot of decrease in the stock value due to the high supply and low demand. However, new news in the field show that this will change really soon due to the new demand that might be rising from China.
The Minister is planning to visit China soon to discuss different deals that can take place which can help the economy. One of the points under discussion is the palm oil industry, where China used to be the biggest demander for the supply, yet after the trade war the numbers decreased greatly. Now with signs showing that the trade war might end soon, the Malaysian Minister is looking forward to try and renew the deal for the palm oil; strengthening the industry one more time. The deal is important as previous numbers show almost RM16.1bil in exports to China right before the trade war.
This was commented on by the Finance Minister Lim Guan Eng by saying, “In 2018, Malaysia exported goods worth RM138.9bil to China, while China exported to Malaysia RM174.9bil. Malaysia suffers a goods trade deficit of RM36bil. I hope that when I visit China next month, China will have some good news for us. Malaysia endorses China’s position to seek an amicable solution based on mutual respect and mutual benefit to all parties.”