17/09/2025 (The Edge Malaysia) - THE Malaysian Palm Oil Board (MPOB) will enforce licensing requirements to curb 3-monochloropropanediol ester (3-MCPDE) and glycidyl fatty acid esters (GE) in palm oil sold domestically from January 2026. No blanket extensions will be given, says director general Datuk Dr Ahmad Parveez Ghulam Kadir, but refineries may apply for more time if they show evidence that they are making progress towards meeting the requirement.

He explains that refineries that are in the process of procuring equipment or upgrading facilities may submit a written request to MPOB by Oct 31. Monthly progress reports must be provided as evidence of ongoing commitment until the required facilities are operational and capable of producing palm oil with reduced 3-MCPDE and GE levels. Approvals for such requests will be determined on a case-by-case basis.

“For us, the most important thing is that companies that have not complied must make sure they tell us when they can do so. They must also show effort that they have already started — for example, clearing the land, getting quotations, maybe appointing the contractor. They must give us proof that they have started the process of complying.

“The whole process will be on a case-by-case basis. We will approve each refinery individually. If they need, for example, 1½ years from the day they appoint the contractor to be ready, then they will need 1½ years. Those that supply a lot to the local market may need more time. So I said, ‘Okay, how long do you need? You prove it to me. What are you going to do?’” Ahmad Parveez tells The Edge in an interview.

“But the only thing is, I cannot force everybody to start on Jan 1, 2026, because many are not ready. And if they say they are not ready, they cannot supply. So what will happen to the Malaysian supply? That’s why a compromise is needed. That’s why now I have to do this [to achieve] the best win-win situation. At least now I can say most of them are willing. They are investing in crude palm oil (CPO) washing,” he adds.

3-MCPDE and GE are contaminants formed during the high-temperature refining of edible oils and fats. The contaminants drew global attention after the European Food Safety Authority (EFSA) released a 2016 report warning of potential health risks.

To address this, MPOB has capped 3-MCPDE levels in palm oil at 2.5 parts per million (ppm). While technologies exist to lower the contaminant, industry adoption has proven difficult due to cost and operational challenges. At present, CPO washing remains the most widely used method for reducing 3-MCPDE, whether carried out at mills or refineries.

The regulation was delayed after just 24% of refineries were found to be ready, Ahmad Parveez says. MPOB subsequently extended the grace period until Dec 31 to allow the industry more time to comply.

“We were supposed to start in 2023, but by 2022, we started getting feedback. Industry players, and even buyers, began asking us if we were really going to implement this. Then we realised that was due to Covid-19 and not many had the opportunity to upgrade their facilities. Many were reluctant to invest. As the deadline approached, we knew enforcing it would impact the whole industry. I cannot kill the industry. So that’s why we postponed it for three years.

“We have given them time until they can comply; [when] they have all the facilities ready, then they can come in. While they are not ready, they will be exempted. But we monitor them. If they decide not to comply, then they will not be allowed to sell locally. So for those who declared that they don’t sell locally, then we don’t have to [take action],” he explains.

For now, the regulation applies only to domestic consumption, while exports remain on a business-to-business (B2B) basis, which means it is up to the contracting parties to set the requirements. Ahmad Parveez notes that demand for low-3-MCPDE and GE oil is still driven largely by European buyers, with China exploring regulations to reduce 3-MCPDE and GE levels but yet to enforce them, while India and other countries have introduced none.

“Currently, only the European Union (EU) has complied. No other countries have done it. So we [are], at least I can say, second, after the EU. China was saying they’re going to do it, but they have not committed anything yet. So we are already [heading] towards that, and we’re going to do it.

“Those who can comply receive a premium for selling low 3-MCPDE oil. Once it becomes mandatory, that premium will disappear. Some buyers, particularly in Europe, already require this standard for their final products. For now, exports remain on a B2B basis to give the industry flexibility, but our priority is for the domestic supply to comply. This ensures Malaysia stays ahead and ready to meet evolving international requirements,” he adds.

https://theedgemalaysia.com/node/769784