KUALA LUMPUR: CAB Cakaran Corporation Bhd

has signed a non-binding memorandum of understanding (MoU) with Oiltek Global Pte Ltd to explore a joint venture in Malaysia to develop animal feed ingredients using palm oil-derived products.

In a statement today, CAB said the proposed collaboration would combine its expertise in poultry farming and animal nutrition with Oiltek's palm oil processing technologies.

Oiltek Global is a wholly-owned subsidiary of Singapore-listed Oiltek International Ltd.

Under the MoU, both parties will explore converting selected palm oil-derived products into feed ingredients for livestock and poultry, with a focus on improving nutritional quality, digestibility and commercial value.

The proposed collaboration will also leverage CAB's existing feed mill operations following its acquisition of Cargill Feed Sdn Bhd, now known as CAB Feed Sdn Bhd, in November 2025.

This strategic acquisition turned CAB from a buyer of feed into a feedmill owner, giving CAB control over four feed mills in Westport, Butterworth, Melaka, and Sabah.

CAB group managing director Christopher Chuah Hoon Phong said the collaboration would allow the company to explore new opportunities in downstream palm-based products.

"This collaboration marks an important step forward in our efforts to expand beyond our existing strengths and create greater value through innovation, technology and the development of new downstream applications for palm-based products," he said.

Oiltek International executive director and chief executive officer Henry Yong Khai Weng said the proposed partnership would allow the company to explore applications of its processing technologies in the animal feed industry.

“Our collaboration with CAB provides an opportunity to explore potential applications of our engineering expertise in the animal feed industry, leveraging CAB’s existing infrastructure and industry experience.

“We look forward to jointly evaluating opportunities that may create value for the Malaysian palm oil and animal feed industries,” he said.

Under the MOU, both parties will evaluate the technical, commercial and operational feasibility of the proposed collaboration, including product development, processing technologies, market opportunities and the framework for a potential joint venture.

CAB said the proposed joint venture remained subject to further evaluation, definitive agreements and the necessary regulatory and corporate approvals.

Further announcements will be made once the framework for the proposed collaboration has been established.