When images of long supermarket queues and empty palm‑oil shelves began circulating across social media in early 2025, many residents of Johor feared a looming cooking‑oil crisis. Supermarkets in Larkin, Tampoi, Pasir Gudang and Kulai reportedly ran out of 1 kg and 2 kg bottles of palm oil, a shortage attributed to surging crude palm oil prices and production cutbacks. The sudden scarcity triggered panic buying. (The Star)
At the same time, a very different and lesser-known phenomenon quietly gained traction in Johor: the rise of self‑service kiosks that accept used cooking oil (UCO) in exchange for cash. One such system, Oil2Wang, promised a novel twist to the waste‑management narrative convert leftover cooking oil into real cash, no questions asked. (The Star)
As Malaysians contend with cooking‑oil scarcity, the existence of such kiosks raises urgent questions: Are these machines a real solution for households burdened by rising prices or just a symbolic gesture that fails to match the scale of demand?
The Promise of Oil2Wang
Oil2Wang originated from research at Universiti Teknologi Malaysia (UTM) in Skudai. Academics there developed sensors capable of distinguishing used cooking oil from other liquids. The concept evolved into a kiosk system: registered users scan a QR code via app, pour in their cooled and filtered oil, and have the credited amount transferred to their bank accounts within 24 hours. The first kiosk operated at Taman Pulai Flora, Skudai. (The Star)
Supporters of Oil2Wang argue its impact can be significant. According to the waste‑management concessionaire SWM Environment Sdn Bhd, its recycling programme in Johor KITARecycle has saved over 1,682 tonnes of recyclable materials from landfills so far. (The Star)
Dr. Faizuan Abdullah, the UTM researcher behind Oil2Wang, said many households remain unaware that cooking oil can be recycled. Their 2020 study among residents in Pasir Gudang found only 7.6% recycled their UCO; the rest simply disposed of it down drains or bins. (The Star)
He also pointed out that each year nearly 50,000 tonnes of UCO is mismanaged in Malaysia, causing drain blockages, water pollution and extra cost to local authorities. The Klang Municipal Council reportedly once spent over RM6 million clearing drains clogged by hardened oil. (The Star)
The economic incentive seems real. In the latest rollout at the rural town of Segamat (March 2025), oil masak terpakai could be exchanged at RM2.50 per kilogram at newly installed Oil2Wang kiosks. (UTM NewsHub)
Limitations of the Cash‑for‑Oil Model
But the reach of Oil2Wang in Johor remains limited. As of mid‑2025, kiosks have been installed only in scattered locations Skudai, Segamat and a few targeted housing estates outside the state’s main industrial zones. (The Star)
That scope is small compared to the demand. The cooking oil shortage that hit Johor in March 2025 showcased the scale of everyday household consumption. Many families went from worrying about shelf stock to scrambling for alternatives in a matter of days. (The Star)
Even if a family heavily reuses cooking oil, the quantity of used oil households typically produce may not be enough to yield significant cash. Compared to the volume of oil consumed both in households and in food stalls the supply to recycling kiosks remains marginal.
Moreover, the price incentive for UCO recycling fluctuates with global crude palm oil futures, making it unstable for those depending on it as a side income. (The Star)
And the existence of a small number of machines may inadvertently fuel misconceptions. Some people may overestimate how accessible “oil-to-cash” really is or assume it offers a reliable financial buffer. That could divert attention from systemic supply issues affecting cooking oil bottling and distribution.
Structural Crisis in Cooking Oil Supply
The cooking oil shortage in Johor is not just a temporary glitch. Retailers traced the disruption to global crude‑palm‑oil price surges. With manufacturing bound by government price controls, producers reportedly find it unprofitable to maintain supplies of small‑size bottled cooking oil. (The Star)
In response, the state government rolled out a zoned distribution plan for subsidised cooking oil packets under Cooking Oil Price Stabilisation Scheme (eCOSS). Johor became the first state to implement eCOSS at consumer level: by August 2025, subsidised oil packets were being distributed to 29 supermarkets around the state through targeted zones. (The Star)
But eCOSS itself brings new challenges. Critics worry the quota system and digital tracking might complicate access for some communities, especially those without digital literacy or easy access to participating retailers.
In that context, recycling initiatives like Oil2Wang offer a narrow but useful channel for those aware and able. Yet they remain peripheral to the bigger supply chain disruptions.
Can Cash‑for‑Oil Help Malaysians Cope?
For some households, especially those who cook often, Oil2Wang provides a modest but tangible benefit. For example, a small family that generates 4 kg of used cooking oil weekly could convert this into RM10 cash monthly. Not life‑changing, but a contribution.
For lower‑income families or small food vendors, that extra money may help offset costs during inflation. For the environment, collecting UCO reduces drain blockage and water pollution.
However, the limitations show clearly. The system depends on two fragile links: availability of kiosks, and stable payout rates. Until Oil2Wang (or similar schemes) scales significantly, most Johor households will still rely on purchased cooking oil and remain vulnerable to future shortages.
A Mirror for Malaysia’s Wider Circular‑Economy Efforts
Oil2Wang reflects a growing shift in Malaysia: from single‑use to circular economy mindset. The rise of recycling kiosks, reverse‑vending machines, and community waste‑buyback programs suggests growing awareness among citizens, municipalities and universities about waste management. The multi‑purpose recycling machine developed by MyGreenPlus claims to accept plastic, metal, paper and even UCO a sign the concept is spreading beyond pilot projects. (mygreenplus.com)
But converting enthusiasm into impact requires scale, reliability and integration into larger supply and waste‑management policies. Single kiosks will never solve a shortage caused by global commodity prices and complex supply chains.
Johor’s cooking oil shortage and its nascent oil recycling movement either for cash or sustainability offer a microcosm for Malaysia’s broader challenges: balancing affordability, supply security and environmental responsibility.
It is tempting to view Oil2Wang as a clever hack: upside leftover cooking oil into cash. It appeals because it seems simple, empowering and green. For a household reeling from inflation or scarcity, that small amount of cash can feel meaningful.
But the true significance of Oil2Wang lies not in the cash it delivers per kilogram. It lies in what it represents: a shift in mindset from waste to resource. In a time when cooking oil a basic household necessity suddenly became scarce, a self‑service kiosk quietly challenged the throwaway culture.
Plastic, metal, paper and now oil can be recycled, given value, plugged into a circular economy. That may not solve factory‑level supply disruptions or global price volatility. But it fosters long‑term resilience and responsibility.
For Johor and the rest of Malaysia, Oil2Wang and similar initiatives raise a question for the future: will we keep treating kitchen waste as garbage or as material with value, both economic and environmental? As we face climate pressure, commodity shocks, and shifting consumption habits, the choices we make no matter.
By turning used cooking oil into cash, Oil2Wang does not end the cooking oil crisis. But it offers a glimpse of another path one where communities reclaim waste, and in doing so, reclaim dignity, income and stewardship of their surroundings.
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