Malaysian businesses need to consider JVs to gain market share for Palm Oil in Myanmar

Malaysian palm oil businesses need to consider setting up joint ventures (JVs) with suitable partners from Myanmar in order to gain more market share in the country’s lucrative oils & fats business.
Malaysian Palm Oil Council (MPOC) CEO Datuk Dr Kalyana Sundram said Myanmar currently imports about 862,000 tonnes of palm oil, however Malaysian palm oil only contributed between 9-10% of the import.
Datuk Sundram said, “Malaysian companies need to set up JVs with Myanmar companies especially in the consumer as well as hotel, restaurant and cafe (HORECA) sectors. We are coaching Malaysian companies to come back on board, so in the longer-term, this will happen.”
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.
Datuk Sundram added that Malaysia has been losing market share in the oils and fats business in Myanmar as it could not match the lower price of its competitors. MPOC and other relevant authorities have been carrying out necessary measures to clear the way and increase exports to Myanmar. For example, customs declaration issues have been addressed and will likely be normalised by September.
Myanmar representatives from Myanmar Edible Oil Dealers’ Association (MEODA) and Indian Myanmar Chamber of Commerce also agreed that Malaysian traders need to form JVs with players from Myanmar. They also mentioned the need to educate consumers in Myanmar on the benefits of palm oil to correct misinformation on the commodity, especially among the younger consumers in Myanmar.