KL seeks help on palm oil ventures

KL seeks help on palm oil ventures

KUALA LUMPUR (AFP): Malaysia yesterday sought assistance to promote tripartite joint ventures in the palm oil plantation business in South America and Africa.

Primary Industries Minister Lim Keng Yaik said such ventures could be formed between Malaysian companies, China's state-owned corporations and local companies in the third countries.

"With Malaysia's expertise in palm oil related activities and coupled with China's need to import palm oil, I think this move will be of mutual benefit, " Lim was reported saying by Bernama news agency.

He was speaking after bilateral talks with visiting Chinese vice-minister of foreign trade and economic co-operation, Li Guohua, at his office.

Lim said the joint ventures would enable China to source its targeted need of six million to seven million tons of crude palm oil by 2000.

Malaysia is the world's biggest palm oil producer, accounting for 62 percent of the world's total trade production and 22 percent of the international oil and fats trade.

Lim said China's imports of palm oil from Malaysia rose to 874,000 tons last year, compared to 40,814 tons in 1986, due to lower import duty, a quota system, familiarization and collaborative programs.

China had early this year further reduced import duty to 12 percent for processed palm oil and nine percent for crude palm oil, he said.