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Kuala Lumpur: The trade conflict between Malaysia and China has actually led to higher export of Malaysian palm oil to China, says the Ministry of Primary Industries.The conflict has resulted in China importing less soybean oil from the United States, hence creating a shortage of the edible oil in the country.

But, the situation has benefited Malaysia which saw higher demand from China for palm oil, the closest competitor to soybean oil, said the ministry in a written reply to Wong Ling Biu (PH-Sarikei) in the Dewan Rakyat on Monday.

"Malaysia's export of palm oil to China rose 9.3 per cent to 1.81 million tonnes between January and August 2018 compared with 1.65 million tonnes exported during the first eight months of 2017.

The ministry also said the export of palm kernel cake from Malaysia also benefited from the trade conflict as China stepped up import by 57 per cent to 127,195 tonnes during the same period against 81,039 tonnes it imported in the corresponding period last year.

China, the biggest importer of soybean oil from the United States, would turn to Brazil to meet its requirement, nevertheless, it would still not be able to meet the country's massive demand for the vegetable oil. – Bernama