KUALA LUMPUR: Malaysia and China have signed a strategic agreement to develop a palm oil supply chain in western China, expanding green industry cooperation between the two countries.

The memorandum of understanding between the Malaysian Palm Oil Board and China's New Land-Sea Corridor Operation Co Ltd will fast-track logistics and trade via the Qinzhou Port-Chongqing route.

The corridor links Malaysia to inland provinces such as Sichuan, Guizhou and Shaanxi.

Plantation and Commodities Deputy Minister Datuk Chan Foong Hin said the pact supports a more sustainable and efficient palm oil network.

"Malaysia is eager to leverage its Malaysian Sustainable Palm Oil certification, one of the world's highest sustainability standards, to deepen institutional linkages with China in areas such as carbon labelling, biofuels and green materials," he said in a statement.

Chan led the Malaysian delegation to the China-Malaysia Industry Cooperation Dialogue, held on the sidelines of the 7th Western China International Fair for Investment and Trade.

The event brought together over 40 firms from the food processing, personal care and oil refining sectors for targeted business discussions. The focus was on boosting industrial uses of palm oil in the Sichuan-Chongqing region.

Malaysia is also collaborating with Chongqing Jiaotong University to develop palm oil-based polyurethane acrylate for anticorrosive coatings.

The effort is part of a broader push to expand palm-derived chemicals in China's industrial applications.

Other initiatives include promoting high-value palm products such as red palm oil, palm stearin and palm-based ice cream powder.

Joint research and development projects are underway with Chinese firms to incorporate these derivatives into hotpot soup bases, snacks and sustainable personal care goods.