9/10/2010 — China News
The East Coast Region Development Council (ECERDC) signed a Memorandum of Understanding (MOU) with Xiamen Zhong Seng Oil & Grains Company Ltd for collaboration in downstream palm oil activities in the East Coast Economic Region (ECER) Malaysia. This is the first time a Chinese corporation is exploring the potential of the ECER’s palm oil production activities.
The ECERDC embarked on its first investment mission to China through the 14th CIFIT to woo investors. At the same time, the council will hold an exhibition in CIFIT.
Xiamen Zhong Seng Oil & Grains Company Ltd director Huang Wen Chuan said, 60% of palm oil are imported from other countries. Malaysia is the world’s second largest palm oil production country; therefore it will create a win-win situation for both sides if the two countries strengthened their cooperation.
“The strategic location of Xiamen and Malaysia will ease the transportation of palm oil in future. Besides importing palm oil to China, we are planning to set up a palm oil refinery plant, making this the first initiative by any China company in the ECER,” said Huang.
ECERDC council member Dato’ Sri Lee Shin Cheng said, “The strategic collaboration is a significant step in the development of the Palm Oil Industrial Cluster (POIC) in ECER Malaysia. In the past time, we are far behind in promoting China policies. Now using CIFIT as a platform, there are a few Chinese entrepreneurs who have shown their intentions to invest in Malaysia.”
Palm oil is one of the key development clusters in ECER. Located in Kuantan, Pahang Malaysia, POIC takes advantage of its proximity to Malaysia’s major palm oil producing areas, petrochemical feedstock and easy accessibility to palm oil mills that produce sufficient feedstock for the downstream activities.
