KUALA LUMPUR (REUTERS) - China has agreed to take palm oil worth nearly US$150 million (S$206 million) from Malaysia in a barter deal, media said on Saturday (June 1), citing a Malaysian minister.
Malaysia will export 1 billion yuan (S$200 million) worth of palm oil, or about 200,000 tonnes, to China, the Star newspaper said.
In return, Malaysia will receive construction services, natural resources products, and civilian and defence equipment from China, the paper said, quoting Ms Teresa Kok, the primary industries minister.
Malaysia has been trying to cut its palm oil stockpile, which hit its highest last December in at least 19 years, in a bid to shore up prices. It is looking to China, its third-largest buyer of palm oil, to take more.
In April, China agreed to buy a further 1.9 million tonnes of palm oil from Malaysia over the next five years and invest at least RM2 billion (S$660 million) in a biojet fuel plant.