Malaysia wants palm oil hubs in Egypt, Saudi Arabia: deputy PM

Malaysia plans to expand palm oil exports into Middle East and African markets by creating new export hubs in Egypt and Saudi Arabia, Malaysian Deputy Prime Minister Fadillah Yusof said in an interview with Nikkei Asia.

Fadillah, who is also Minister of Commodities and Plantation Industries, said his ministry and the Malaysian Palm Oil Council (MPOC) are trying to push further into emerging markets, which have recently seen their re-exports of the oil rise. Malaysia is the world's second-largest exporter of palm oil after Indonesia. Its top importers include India, China and the Philippines.

"There are a few strategies that we are looking at. Firstly, exploring new markets and at the same time strengthening relations with all the countries that are close to us as far as markets are concerned," the deputy prime minister told Nikkei.

Fadillah spoke with the Egyptian ambassador to Malaysia, who said that Egypt is "keen" on being the regional hub for palm oil distribution. "They want to import more from us and they want Egypt to be the hub so they can spread it out to Africa."

"The same goes for the markets in the Middle East. Saudi Arabia, for example, is also interested [in being a hub] like Qatar."

Malaysia's palm oil exports to the Middle East increased 32% last year and those to North Africa 51%.