KUALA LUMPUR, June 2025 — Malaysia’s government is stepping up measures against fraud in used cooking oil (UCO) exports, following concerns from European biodiesel buyers over potential mislabeling with virgin palm oil.
Deputy Plantation and Commodities Minister Chan Foong Hin has ordered the Malaysian Palm Oil Board (MPOB) to strengthen regulatory standards to differentiate genuine UCO from sludge palm oil (SPO). The aim is to enhance traceability and export integrity, ensuring that Malaysia’s reputation as a reliable UCO supplier remains intact
“The centre of this issue is traceability. How do you make the whole supply chain traceable?” Minister Chan remarked, underscoring the importance of clear documentation from collection to export
This initiative responds to complaints by Western biodiesel producers alleging that some UCO exports were being supplemented with cheaper virgin palm oil, risking Malaysia's ability to meet the EU’s deforestation and sustainability requirements. The integrity of used cooking oil supply chains is a critical factor in biodiesel certification
Why It Matters
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Protecting Export Markets: Ensures Malaysia remains a trusted supplier to EU biodiesel refineries
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Regulatory Compliance: Meets upcoming EU deforestation regulation (EUDR) and other global standards
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Maintaining Credibility: Upholds the reputation of Malaysia’s palm oil industry amid global sustainability scrutiny
Minister Chan also noted that 87% of Malaysia’s palm plantations already meet Malaysian Sustainable Palm Oil (MSPO) certification, demonstrating readiness for tighter traceability enforcement
🔍 Strategic Insight
Malaysia’s enhanced enforcement on UCO exports reflects a broader industry imperative: maintaining global credibility and market access in an era of heightened scrutiny on sustainability. While recent declines in exports to India—Malaysia’s top buyer—have been labeled “short-term,” ensuring clean and verifiable supply chains is essential for long-term competitiveness.
Call to Action:
Exporters and traders in the UCO and palm industry should closely monitor updates from the MPOB and prepare for new traceability protocols. Subscribe to Business Point Magazine’s Agricommodities Bulletin for expert guidance and regulatory insights.
