A rebound in buying by the world's biggest vegetable oil importer would support Malaysian palm oil futures and help top producers Indonesia and Malaysia to trim inventories.

Palm oil is a controversial commodity, blamed by environmentalists for fuelling the destruction of rainforests in Malaysia and Indonesia, which together produce 85% of global output.

The plantation and commodities minister says Malaysia's negotiations with the EU on a trade deal could be resumed if the EU would treat Malaysia with fairness and as a partner.

This will continue while they seek fairer treatment for small palm oil producers.

Despite a new labour agreement between the two countries coming into force last year, three plantation companies say their firms have not resumed hiring Bangladeshi workers.

They say producers are imposing higher export duties on crude palm oil than for refined and making the buying of refined palm oil cheaper than the crude grade.

The EU is a major palm oil importer and the law, agreed to in December, has raised an outcry from Indonesia and Malaysia, the top producers.

Anwar and Jokowi sign memorandums of understandings for shipping, export-import financing, green energy, and the development of battery industry, which they hope will deepen cross border trade and investment.

Palm oil prices have climbed by around a fifth this month but are still trading far below an all-time high set in March.

The Malaysian Palm Oil Association estimates only 12% of approvals for migrant workers granted to companies across all industry sectors in Malaysia have successfully translated into boots on the ground.

Higher soyoil purchases will support US soyoil prices, but will dent rival palm oil's share in Indian buying and force Malaysian and Indonesian sellers to offer discounts to regain the market share, traders say.

The villagers are not against the increase in FGV board allowances but say now is not the right time.