(Yicai Global) Nov. 14 -- Malaysia is a main producer and China a major importer of its palm oil. The trade relationship between China and Malaysia will promote their cooperation in the field of palm oil, said Jamaluddin Bin Nor Mohamad, chief executive of Bursa Malaysia Derivatives, in a speech to the 13th China International Oils and Oilseeds Conference 2018 in Guangzhou today.
The Kuala Lumpur-based company 'provides, operates and maintains equity, interest rates, bond, agricultural commodity (crude palm oil and palm kernel), metal commodities (gold and tin) futures and options market trading and settlement services,' per its website.
The Malaysian bourse and Dalian Commodity Exchange have formed a deep and close cooperative relationship over the past decade and jointly host the CIOC, which shares information and trends in global oils and oil seeds for producers and oil refiners and has thereby gained a reputation over the years, he said.
Malaysia is China's second-largest trade partner in the Association of Southeast Asian Nations. Their bilateral trade reached USD96.3 billion last year, a rise of 26 percent over 2016. China was Malaysia's largest partner for the ninth consecutive year as of the end of last year and it was also its second-largest export destination for palm oil, Futures Daily reported.
China is caught in the throes of global trade friction that impacts its oils and oilseeds imports. Malaysia, as a major global palm oil producer and exporter, claims 39 percent of world palm production and 44 percent of its exports. It will help fill the gap in China's edible oil imports.
The BMD seeks to meet the interactive needs of the two countries in the palm oil sector by enhancing their ecosystem and improving contractual characteristics, Jamaluddin Bin Nor Mohamad added.
Editor: Ben Armour