But Hoo Ke Ping said Putrajaya had not been forthcoming over China’s readiness to buy unlimited palm oil.
“Sadly, nobody has responded to China,” Hoo told FMT.
China’s ambassador to Malaysia, Bai Tian had recently said that his country would be importing more Malaysian palm oil and palm-based products.
“We will not set any limit on the import of Malaysian palm oil and related products,” he reportedly said.
Malaysia has criticised the EU’s move to ban the use of palm oil in biofuels, following concerns over deforestation.
China is Malaysia’s second largest buyer of palm oil after the EU, and is expected to be the largest primary products importer within two years’ time.
It has also overtaken India to become the number two export destination for Malaysian palm oil and palm-based products.
In the first 11 months of 2017, total export of palm oil and palm-based products to China grew 9.8% to RM8.52 billion, from RM7.76 billion a year earlier.
Hoo said Malaysia should not just stop at exporting palm oil, but tap into China’s market for affordable cooking oil.
“If the Americans choose to impose trade sanctions against China, a trade war is likely to happen. China, being the US’ biggest soybean buyer, is anticipated to boycott the purchase of soybean,” he said.
Hoo said Malaysia could supply China with affordable cooking oil, as the use of “di-gou-you” or gutter oil, is an issue there.
“Di-gou-you” is leftover or overused oil from restaurants, which is then redistributed and reused.
The oil is sometimes bleached or mixed with other chemicals to make it appear genuine, which makes it difficult for officials to control its trade.
“This is happening because oil prices are too expensive in China and its people cannot afford to buy cooking oil,” Hoo said.
“Malaysia should find a way to help China in this manner and step in to fill the US’ shoes.”