KUALA LUMPUR: China will increase its imports of Malaysian palm oil by 250,000 metric tons a year, state news agency Bernama reported on Sunday, citing Malaysian Prime Minister Anwar Ibrahim.

Anwar’s announcement was made after he witnessed the signing of a memorandum of understanding between Malaysian palm oil firm Sime Darby Oils International Ltd and China’s Guangxi Beibu Gulf International Port Group, Bernama said.

The deal would also see the two firms develop a refined palm oil and fats distribution and trading centre in Qinzhou, China, according to Bernama.

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“This is a perpetual agreement with China, which is a huge achievement for the parties involved,” Anwar was quoted as saying at the signing, part of his one-day visit to a regional trade event in Nanning, China.