Use of Effluent Charges in Malaysia's Palm Oil Industry

Malaysia is one of the countries to first introduce effluent charge system, specifically for palm oil and rubber mills. In 1977, the country’s Department of Environment (DOE) announced discharge standards for BOD on palm oil effluent. Prior to the introduction of the regulation, crude palm oil was the single worst pollution source in the country. Daily discharge alone increased by more than 300% from 1965 to 1977. The aim of the regulation was to reduce pollution created by the sector without hampering its growth.