Malaysia hopes to pay for military equipment with palm oil

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Malaysia hopes to pay for military equipment with palm oil
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Malaysia is in talks with at last six countries on the possibility of using palm...

KUALA LUMPUR - Malaysia is in talks with at last six countries on the possibility of using palm oil to pay for arms, as Southeast Asia’s third-biggest economy seeks to replace old equipment to boost its defense capabilities.

Costs have been a big hurdle but using palm oil to help pay for equipment could open new avenues to upgrade, Defence Minister Mohamad Sabu said on Monday. The two countries supply about 85% of global palm oil, much of which is used in food but also in items such as lipstick and soap. China claims historic jurisdiction over the sea via a so-called nine-dash line on maps, but it overlaps with territory claimed by Malaysia, China, Vietnam, Brunei and the Philippines.Recent Chinese naval deployments in the disputed sea, through which over $3.4 trillion in goods are transported annually, have reignited tension with Vietnam and the Philippines.

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