Palm oil-based used cooking oil collection activities need MPOB licence

KUALA LUMPUR: The collection of used cooking oil in the market requires a licence from the Malaysian Palm Oil Board (MPOB) if it is palm oil-based, said director-general Dr Ahmad Parveez Ghulam Kadir.

He said used palm cooking oil can be recycled into other products specifically for the production of non-food products such as biodiesel, wax, detergent, soap and animal feed.

“The collection of used palm cooking oil (UPCO) is one of the activities in the palm oil industry that is licensed and monitored by MPOB. Interested parties can apply for a licence from the MPOB,” he said in a statement today.

Ahmad Parveez said that in 2020, the total purchase of UPCO in the country by palm oil dealers and biodiesel plants increased to 446,904 tonnes from 308,015 tonnes the previous year.

In the same year, total sales of UPCO by palm oil dealers and biodiesel plants increased to 249,946 tonnes from 245,400 tonnes in 2019.

Meanwhile, the amount of processed UPCO by biodiesel plants and palm oil dealers also recorded an increase from 8,345 tonnes in 2019 to 189,717 tonnes in 2020.

He said UPCO was classified as sludge palm oil (SPO) as stipulated in the Malaysian Palm Oil Board (Licensing) Regulations 2005.

There are four activities licensed by MPOB namely selling and moving of SPO; buying and moving of SPO, storing SPO; and exporting SPO.

“MPOB charges a licence fee of RM100 per year for each of the activities,” he said.

Licence applications will be approved based on four criteria namely the business entity; the capital of the entity; the ownership of the premises; and the suitability of the premises.

Interested parties can apply for a licence online at

For exporting activities of palm oil (crude palm oil or CPO), (processed palm oil or PPO) and SPO, the applicant must apply for a Customs export licence (AP) under the Customs Act 1967: Customs (Prohibition on Exports) Order 2017. – Bernama

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