KUALA LUMPUR: Waste management services provider 5E Resources Holdings Bhd is poised to leverage the government’s move to raise the biodiesel blend rate to B15, expecting increased waste generation from the biodiesel industry to support its growth.
Chief executive officer Lim Te Hua said the group’s expansion in Johor Bahru, slated to commence operations in the second half of 2026, would enable it to handle a larger share of waste from customers.
He said the group currently manages only 20 per cent of waste from one biodiesel industry customer in Tanjung Langsat, Johor Bahru, due to quota constraints.
"Hopefully, with our PLO 321 facility (in Johor), we can handle more. Because of quota limitations, we currently take about 200 metric tonnes from their total volume.
"With the new facility, this could rise to 50 per cent from the current 20 per cent,” he told reporters after the group’s listing ceremony here today.
5E Resources debuted on the ACE Market of Bursa Malaysia at 28.5 sen, a premium of 2.5 sen over its initial public offering price of 26 sen, with 36.22 million shares traded.
Yesterday, Economy Minister Akmal Nasrullah Mohd Nasir announced that the government had agreed to raise the biodiesel blend rate from B10 to B15 to help sustain Malaysia’s diesel supply following the crisis in West Asia.
Meanwhile, chief operating officer Shankar Narasingam said the government’s move to review the implementation of the carbon tax was a positive development for the industry.
"The consideration of carbon credits is beneficial for the industry, as companies such as 5E Resources can generate carbon credit savings, which can be distributed to other companies not engaged in similar carbon-saving practices, creating a resource and revenue platform,” he said.
He added that the group is not dependent on fossil fuels as it uses recycled fuel in its treatment processes, resulting in significant carbon credit savings.
He also said co-generation of power supply is another source of carbon credits for the group.
The group expects its new expansion facility in Johor Bahru to contribute positively to its financial year 2026. - Bernama
