PKFZ ready to open records, facilitate audits amid cooking oil traceability concerns

KUALA LUMPUR, Nov 12 — The Port Klang Free Zone (PKFZ) says it is prepared to provide relevant reports and facilitate regulatory audits amid concerns over the origin, authenticity and traceability of cooking oil products allegedly blended before being re-exported under Malaysian labels.

PKFZ chairman Lim Lip Eng said the free zone would extend its full cooperation to the relevant authorities.

“We will provide our full cooperation and assistance, including making available relevant reports and facilitating any audit requests,” he said in a statement. 

Lim said PKFZ operated under the Free Zones Act, while enforcement involving product authenticity and regulatory compliance fell under the jurisdiction of the relevant government agencies.

These include the Malaysian Palm Oil Board (MPOB), SIRIM, the Malaysian Quarantine and Inspection Services Department (MAQIS) and the Construction Industry Development Board (CIDB).

His response follows concerns raised last week by Maritime Network Sdn Bhd chief executive officer Datuk Seri R. Jeyenderan Ramasamy over the alleged blending of imported cooking oil with locally produced supplies before it is exported under Malaysian labels.

Jeyenderan said the alleged practice, which industry players have described as an oil “cocktail”, warranted closer scrutiny by the authorities, particularly over product origin, quality and food safety.

His remarks came after The Edge reported on Nov 4, 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. According to the report, blending ratios of 75:25 or 80:20 were circulating in the market.

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.

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 had asked previously. 

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 was quoted saying. 

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 will apply 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.

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.