
The purchase comes following Prime Minister Dr Mahathir Mohamad’s request to the Chinese government to buy more palm oil from the country.
Primary Industries Minister Teresa Kok, who witnessed the signing of the agreements, said the deals would help to reduce the palm oil stockpile and boost the price of the commodity.
Last year, Malaysia exported 3.07 million tonnes of palm oil and palm products worth RM8.38 billion to China.
Officials said the increase was partly as a result of China’s trade spat with the United States.
Kok had earlier officiated the Malaysia China Palm Oil Business Forum, jointly organised by Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Council (MPOC) and the Chinese Chamber of Commerce of Foodstuffs and Native Produce (CFNA).