Malaysia is taking proactive measures to reclaim its portion of China’s palm oil market, following a precipitous drop of almost 39% in export volumes year-on-year in the first ten months of 2025.
Factors Influencing the Decline
According to Malaysia’s Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, this dramatic decrease can be attributed in part to logistics issues and a surge in palm oil prices. The latter has overtaken the costs of soybean oil, making soybean oil more attractive to Chinese buyers.
Chinese Market Significance
China holds a pivotal role as a strategic market for Malaysia, having consistently been one of the leading destinations for Malaysian palm oil exports for over a decade. Ghani remarked that the steep decrease points to deeper problems, extending beyond simply competitiveness and logistics. The issues also involve pricing dynamics and market positioning.
Transparent Export Policies
Ghani underscored that Malaysia remains committed to maintaining clear and predictable export policies. This approach is designed to ensure that the nation’s activities do not interfere with the interests of its key trading partners.
Promoting Continuous Dialogue
In addition, Malaysia is open to ongoing discussions to better synchronize expectations regarding pricing trends, market developments, and long-term supply planning, the minister added.
Source: Retail News Asia
Share:
<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
