Why is China a key market for Malaysia?

Malaysian Palm Oil Council (MPOC) director-general Belvinder Sron said China, with a population of 1.4 billion, was undoubtedly an important market for Malaysia. This results in a significant demand for oils and fats of about 42.0 million tons per year, with 25–30 percent of this demand being met through imports. “Growing demand and production shortfalls present significant opportunities for Malaysia. The close geographical proximity between the two countries further strengthens Malaysia's role in bridging any gaps between supply and demand, especially during periods when geopolitical factors disrupt the supply chain,” he said. Belwinder noted that despite the recent slowdown in the Chinese economy, China's status ensures continued and growing demand for palm oil. In addition, limited arable land and a growing economy indicate that China is likely to increase imports of vegetable oils, including palm oil. The International Monetary Fund forecasts China's economy will grow by five ...