Oil ‘cocktail’ exports place Malaysia’s palm oil credentials under scrutiny - expert

Malaysia's palm oil industry is facing scrutiny over allegations of blending imported cooking oil with locally produced supplies before re-exporting under a Malaysian label. This practice, dubbed an "oil cocktail," has raised concerns regarding product origin, traceability, and food safety. Maritime Network Sdn Bhd CEO Datuk Seri R. Jeyenderan stated that the issue warrants closer investigation by authorities, particularly concerning product origin, quality, and food safety.

Industry sources reported that imported palm oil was allegedly blended with local supplies, with blending ratios ranging from 75:25 to 80:20. Jeyenderan emphasized the need for independent laboratory tests to verify the oil's actual composition and quality after blending, as well as to ensure compliance with quality and food safety standards.

He questioned whether oil samples were tested before leaving Malaysian waters, noting that the vessels involved lacked specialized laboratory facilities or qualified chemists for detailed analyses. Jeyenderan warned that declaring the blend as wholly Malaysian may mislead buyers, as Codex Alimentarius only permits origin changes when processing alters a food's nature.

He also pointed out that international palm oil trade contracts require independent analysis by qualified surveyors. Additionally, Article 3 of the European Union Deforestation Regulation (EUDR), applicable to large operators from December 30, 2026, mandates traceability of palm oil to the plots of land where it was produced. Failure to address these concerns could impact consumer confidence, Malaysia's reputation as a food exporter, and its palm oil certifications, including the Malaysian Sustainable Palm Oil (MSPO) certification.