By Doaa A. Moneim, Kuala Lumpur, October 8, 2024
Egypt and Malaysia are progressing towards a free trade agreement (FTA), with palm oil as a key component, according to Malaysia’s Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani. Speaking at the Malaysian Palm Oil Forum (MPOF) in Kuala Lumpur, Abdul Ghani confirmed that discussions with Egypt’s Minister of Investment and Foreign Trade, Hassan Elkhatib, are actively underway to shape the FTA, signaling strengthened economic ties between the two nations.
Egypt is a significant importer of Malaysian palm oil, and Malaysia sees Egypt as a vital market for its products. The Malaysian Palm Oil Council (MPOC) maintains a trade office in Cairo, highlighting the strategic importance of Egypt, not only as a market but also as a gateway to broader trade in the Middle East and Africa. Malaysia ranks second globally in palm oil production, and palm oil plays a crucial role in Egypt’s food processing, cosmetic, and industrial sectors.
The ongoing forum, themed “Navigating Trading Challenges with Sustainable Solutions,” is a platform for addressing market trends and sustainability concerns. It brings together industry stakeholders from both countries and provides networking opportunities, aiming to capitalize on Egypt’s position in global trade and its existing multilateral trade agreements.
Palm oil’s cost-efficiency, compared to other vegetable oils like soybean and sunflower, makes it an essential commodity in Egypt. Imports have surged, with palm oil comprising 67% of Egypt’s total oils and fats imports in 2022. The Egyptian government has also integrated palm oil into its food subsidy program, further driving demand.
With preferential trade agreements and its strategic location, Egypt is poised to become a major re-export hub for Malaysian palm oil, enhancing the partnership’s potential and creating new market opportunities across the region.
