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The Malaysian Palm Oil Board (MPOB) will implement licensing requirements to limit 3-monochloropropanediol esters (3-MCPDE) and glycidyl fatty acid esters (GE) in palm oil sold locally starting January 2026.
Director-general Datuk Dr. Ahmad Parveez Ghulam Kadir said there will be no blanket extensions, but refiners may apply for more time if they show evidence of progress toward meeting the requirements.
He explained that refiners in the process of purchasing equipment or upgrading facilities may submit a written application to MPOB by October 31.
Monthly progress reports must be submitted as proof of continued commitment until the required facilities are ready for operation and capable of producing palm oil with low levels of 3-MCPDE and GE.
Approvals will be determined on a case-by-case basis.
Ahmad Parveez said the most important point is that companies that have not yet complied must inform MPOB when they can do so and show evidence that they have already begun the compliance process, such as clearing land, obtaining quotations, or appointing contractors.
He told The Edge that the whole process will be handled individually for each refinery. If a refinery needs one and a half years from the appointment of a contractor to become ready, then that timeframe may be considered. Refineries supplying large volumes to the domestic market may need more time, provided they prove what they plan to do and how long they need.
He added that MPOB cannot force all companies to begin on January 1, 2026, because many are not ready. If unprepared companies are barred from supplying, Malaysia’s domestic supply could be affected. Therefore, a compromise is needed to reach the best win-win position, he said, adding that most players are now willing and are investing in crude palm oil washing.
3-MCPDE and GE are contaminants formed during the high-temperature refining of edible oils and fats. They attracted global attention after the European Food Safety Authority (EFSA) issued a 2016 report warning of potential health risks.
To address the issue, MPOB set a maximum 3-MCPDE level of 2.5 parts per million (ppm) in palm oil.
Although technologies exist to reduce the contaminant, industry adoption has proven difficult because of costs and operational challenges. At present, crude palm oil washing remains the most widely used method to reduce 3-MCPDE, whether carried out at mills or refineries.
The regulation was delayed after only 24% of refineries were found to be ready, Ahmad Parveez said. MPOB then extended the grace period until December 31 to give the industry more time to comply.
He said implementation had initially been planned for 2023, but feedback from industry players and buyers showed that many companies had not had the chance to upgrade their facilities because of Covid-19. Many were also hesitant to invest.
As the deadline approached, MPOB realized enforcement would affect the entire industry, so implementation was delayed for three years.
Companies were given time to comply. Those with ready facilities can enter the system, while those not ready may receive exemptions but remain under monitoring. If a company decides not to comply, it will not be allowed to sell locally.
For companies that declare they do not sell locally, no action is required.
For now, the regulation applies only to domestic consumption, while exports remain on a business-to-business basis, meaning contracting parties decide the requirements between themselves.
Ahmad Parveez noted that demand for low-3-MCPDE and low-GE palm oil is still largely driven by European buyers. China is exploring regulations to reduce 3-MCPDE and GE levels but has not yet enforced them, while India and other countries have not implemented such regulations.
He said the European Union is currently the only major market complying with such requirements, while Malaysia will effectively become one of the early movers after the EU.
He added that companies able to comply currently receive a premium for selling low-3-MCPDE oil, but once the requirement becomes mandatory, that premium will disappear.
Some buyers, especially in Europe, already demand this standard for their final products.
Exports remain B2B for now to give the industry flexibility, but MPOB’s priority is to ensure domestic supply complies. This will help Malaysia stay ahead and be ready to meet evolving international requirements.
Source: The Edge