KUALA LUMPUR, June 16 – Malaysian palm oil traders need to consider setting up joint ventures (JVs) and partners players from Myanmar in their bid to capture more market share in the country’s oils and fats business.

Malaysian Palm Oil Council (MPOC) chief executive officer, Datuk Dr Kalyana Sundram said Myanmar currently imports about 862,000 metric tonnes (MT) of palm oil with Malaysian palm oil only contributed between nine to ten per cent of the import.

"Malaysian companies need to set up JVs with Myanmar companies especially in the consumer as well as hotel, restaurant and café (HORECA) sectors.

"We are coaching Malaysian companies to come back on board, so in the longer-term, this will happen,” he said in an online seminar titled "Recapturing Palm Oil Market Share in the Golden Land – post Covid-19”.

The online seminar was organised by the Malaysia External Trade Development Corporation (MATRADE) in Yangon.

Furthermore, Malaysian traders should also invest in storage, bulking and manufacturing facilities in Myanmar to facilitate the production and distribution of edible oil, while ensuring the quality remained intact, he said.

He said Malaysia has been losing market share in the oils and fats business in Myanmar because it could not match the lower price of its competitors.

MPOC and other relevant authorities in Malaysia have been carrying out necessary measures to clear the way and increase exports to Myanmar.

In this regard, customs declaration issues have been addressed and would likely be normalised by September, he said.

Meanwhile, other panellists during the seminar, Myanmar Edible Oil Dealers’ Association (MEODA) chairman, U Myint Kyu and Indian Myanmar Chamber of Commerce vice-president, Naresh Kumar Dinodiya also agreed that Malaysian traders need to form JVs with players from Myanmar.

Naresh said the traditional trading model would not work for long and players need to establish partnerships and regular buyer-supplier relationships.

"Other than that, there should also be frequent education to consumers in Myanmar on the benefits of palm oil to debunk inaccurate information on the commodity, especially among youngsters in Myanmar,” he added. — Bernama