Oil ‘cocktail’ exports put Malaysia’s palm oil credentials under scrutiny, says maritime industry veteran

Maritime Network Sdn Bhd chief executive officer Datuk Seri R. Jeyenderan said the alleged practice, which industry players have described as an oil “cocktail”, warranted closer scrutiny from the authorities, particularly over product origin, quality and food safety. — Picture courtesy of Maritime Network

First Published: Thursday, 05 Nov 2026 12:56 PM MYT

KUALA LUMPUR, Nov 5 — The alleged blending of imported cooking oil with locally produced supplies before it is re-exported under a Malaysian label has raised concerns over product origin, traceability and food safety, with calls for the authorities to investigate the practice.

Maritime Network Sdn Bhd chief executive officer Datuk Seri R. Jeyenderan said the alleged practice, which industry players have described as an oil “cocktail”, warranted closer scrutiny from the authorities, particularly over product origin, quality and food safety.

The Edge reported yesterday, citing industry sources, that imported palm oil was allegedly being blended with local supplies before being re-exported, potentially allowing foreign-origin oil to be marketed as Malaysian palm oil. Blending ratios of 75:25 or 80:20 were reportedly circulating in the market, the report said.

Jeyenderan said an examination of cargo manifests and bills of lading had raised concerns over how the oil’s country of origin was declared and how its actual composition was verified after blending.

Jeyenderan, who has more than 30 years of experience in the maritime industry, said independent laboratory tests were needed to establish whether the imported oil and the final blended product met the required quality and food safety standards.

He also questioned whether oil samples were tested before the vessels carrying the cargo left Malaysian waters, claiming the vessels concerned were not equipped with specialised laboratory facilities or qualified chemists to carry out detailed analyses.

“How could the actual composition and quality of the cargo be independently verified without proper laboratory testing?

“The issue is not just about blending different types of oil, but also about whether the origin and composition of the final product can be properly established before it is exported,” he said in a statement. 

Jeyenderan said any possibility of contamination should be investigated through scientific testing rather than assumptions.

“If the oil is contaminated, what could be the impact on public health? Who is responsible for ensuring that the final product is safe for consumption?” he asked.

He said international rules already set clear expectations on origin, testing and traceability.

Under the Codex Alimentarius, the international food standards adopted by the United Nations’ Food and Agriculture Organization and World Health Organization, the General Standard for the Labelling of Prepackaged Foods requires a food’s country of origin to be declared if leaving it out would mislead or deceive consumers.

“Codex only allows the origin to shift when processing changes the nature of the food. Simply mixing imported oil with Malaysian oil does not change its nature, so declaring the blend as wholly Malaysian may mislead buyers,” he said.

On testing, he noted that international palm oil trade contracts under FOSFA International, including FOSFA Contract No. 81 issued jointly with the Palm Oil Refiners Association of Malaysia (PORAM), require independent analysis by qualified surveyors.

He also warned that Article 3 of the European Union Deforestation Regulation (EUDR), which applies to large operators from December 30, 2026, requires palm oil entering the EU to be traceable to the plots of land where it was produced.

“If foreign oil of unknown origin is mixed into Malaysian oil, the whole cargo may fail EUDR traceability. That puts genuine Malaysian exporters and our MSPO credibility at risk just as the regulation comes into force,” he said, referring to the Malaysian Sustainable Palm Oil certification.

He urged the authorities to clarify the procedures governing the import, blending, sampling, quality certification and re-export of cooking oil, including which agencies are responsible for monitoring each stage.

He said proper documentation and independent laboratory testing were essential to ensure that products exported from Malaysia complied with the required standards and that their country of origin was accurately declared.

He added that failing to address the concerns could affect consumer confidence and Malaysia’s reputation as a food exporter.

An industry source said the alleged practice, if taking place, could displace locally produced palm oil in overseas markets and undermine confidence in Malaysia’s palm oil brand, including its MSPO certification and traceability framework.

“In the trade, this ‘cocktail’ is clearly an adulteration of Malaysian oil. It cannot be confirmed by the market alone, which is why the authorities need to check.

“Customs, MPOB (Malaysian Palm Oil Board) and Miti (Ministry of Investment, Trade and Industry) already hold the import and origin records, so this can be checked quickly,” the source said.