Palm oil-based cooking oil collection must have MPOB licence


BUSINESS entities that run any used cooking oil collection activities in the market require a licence from the Malaysian Palm Oil Board (MPOB), as the board regulates such activities, especially if they involve palm oil.

MPOB DG Dr Ahmad Parveez Ghulam Kadir (picture) said for each activity, the licence fee is RM100 annually while the approval is subject upon fulfilment of four key criteria.

First, the company must be registered with the Companies Commission of Malaysia (SSM) and if a cooperative, through the Cooperative Commission of Malaysia.

Secondly, the capital of the entity must be RM50,000, or RM100,000 if there are export activities, and proof of capital can be obtained through SSM’s capital and share information, latest bank statement (sole proprietor) and cooperative share ownership.

The entity must also present legal ownership and necessary documents like land title deeds, leases, rents, sale and purchase agreements, permission to occupy from the owner or other relevant documents.

Lastly, on the suitability of the premises, where it will not be approved if there are storage activities for the purpose of human food and livestock. Terrace and semi-detached premises must be free from the possibility of contamination.

“The method of storage and handling must be appropriate to the activities for which the licence is applied for,” Ahmad Parveez said in a statement last Friday.

Used palm cooking oil (UPCO) can be recycled into other non-food products such as biodiesel, wax, detergent, soap and animal feed.

According to Ahmad Parveez, overall UPCO purchases by palm oil dealers and biodiesel plants in the country grew to 446,904 tonnes in 2020, up 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.

There are four activities licensed by MPOB namely selling and moving of sludge palm oil (SPO), buying and moving of SPO, storing and exporting SPO.