For Henry Yong, CEO of Oiltek, growth is never about sticking to just one lane. “I’m the kind of person who doesn’t like to continuously do the same thing without improvement or change. Some may like repeating the same thing year in, year out, but I can’t; I see business differently. We believe in continual improvement, innovation, and integration,” he says.

Over the past few years, under his leadership, Oiltek has significantly broadened its scope — from designing and delivering edible and non-edible oil refining plants to downstream value-added processes, renewable energy, and now large-scale turnkey projects that include installation and full infrastructure.

This approach, Yong believes, allows the company to remain agile and continuously explore new growth avenues. “Some are happy to grow the business organically, but I always prefer to innovate and expand by adding more business segments,” he explains. This mindset has led Oiltek to innovate not only in products but also in various services and supply areas. Today, the company has a wide range of comprehensive solutions that cover everything from equipment supply to complete facility construction. Innovation is part of the group’s DNA, and it proudly aims to have an innovation every 180 days, building on its proprietary technologies and intellectual property foundations.

Turnkey projects at Oiltek are categorised into two types: inside system battery limit (ISBL) and outside system battery limit (OSBL). ISBL covers core operational units, including refineries, process plants and biodiesel process plants. On the other hand, OSBL handles the surrounding infrastructure, including tank farms, utilities, offices, operations and warehouse buildings, as well as wastewater treatment facilities. “We are currently executing five turnkey projects that will enhance both revenue and performance,” Yong notes.

This expansion strategy directly underpins Oiltek’s profitability and strong earnings growth, which has helped Oiltek maintain a high price-to-earnings ratio and steady investor confidence.

Diversification as a growth driver

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Diversification remains central to Oiltek’s consistent growth. “Every new product or service we add strengthens our business performance. It’s simple logic,” Yong explains. Beyond edible and non-edible oils, Oiltek also has renewable energy processes for hydrogenated vegetable oil [HVO], a feedstock for sustainable aviation fuel [SAF], as well as waste-to-energy or other value-added solutions.

A surge in post-pandemic demand also accelerated performance as customers resumed their delayed projects. “Orders now total around RM362 million ($113.4 million), spanning over 60 active projects across the region,” he says. These include refinery plants in Malaysia, Indonesia, Thailand, Pakistan, and Africa, as well as biodiesel plants in Malaysia and Indonesia. Additionally, there are animal feed and downstream specialty fats projects in Indonesia, and recent ventures in Latin America and Central America.

“When competitors are few, margins are naturally higher,” he adds. Oiltek strategically enters markets where technical expertise, strong track record and turnkey capabilities give it a clear competitive advantage.

While Indonesia remains active, Malaysia has regained momentum post-Covid 19, and emerging markets like Pakistan, Bangladesh, and parts of Africa are also gradually reviving. 

This expansion isn’t just about broadening revenue streams — it aligns with Oiltek’s sustainability commitments. With many of these regions prioritising renewable energy and green technology, Oiltek is well-positioned to capitalise on new opportunities in SAF, biodiesel and waste-to-energy processes.

Yong also clarifies that the edible and non-edible oil segment is more diverse than many assume. “It’s not just about palm oil — it includes downstream products like margarine, coffee creamer, pharmaceuticals and nutraceuticals, animal feed, oleochemicals, and even the respective renewable energy sectors. When palm oil prices drop, for example, these downstream products help balance the equation.”

From concept to core strategy

For Oiltek, sustainability is more than a corporate buzzword — it’s a growth philosophy. “We have gone beyond renewable energy with vegetable oils, and can now tap waste oil to produce biodiesel and HVO feedstock for SAF, and generate methane biogas from palm oil mill effluent to produce electricity or bio-compressed natural gas (CNG),” Yong says.

Oiltek has also embarked on solid waste utilisation. Biomass from empty fruit bunches and forestry waste is converted into pellets or syngas, with potential applications for further advancement of processes that convert a mixture of carbon monoxide and hydrogen into liquid hydrocarbons, such as gasoline, diesel, and kerosene, via the Fischer-Tropsch process. These initiatives encompass the full spectrum of sustainable solutions — including solid, liquid and gaseous renewable energy segments — and will position Oiltek among leaders in this area. 

“Every solution we develop must be practical, feasible and scalable; otherwise, it’s just an experiment,” says Yong. This focus on commercial viability has kept Oiltek lean, resilient, and consistently profitable — a discipline reflected in how it manages its finances and rewards its shareholders.

The group maintains a strong balance sheet and shareholder-friendly dividend practices, typically distributing up to 50% of its profits. “We aim to reward shareholders while keeping enough funds for growth. We try to maintain dividends of at least 40% of net profit.”

To expand cost-effectively, Oiltek partners with local agents in its target markets on a success-based fee commission structure, while still providing all essential local support as required, instead of setting up offices abroad. “Opening an office may incur ongoing administrative costs. By using agents and working on success-based partnerships, it keeps everyone accountable and when the results come, everyone wins,” Yong notes. 

Post-Bursa agenda

With a secondary listing in Malaysia on the horizon, Oiltek aims to significantly broaden its investor base, particularly among those aligned with national agendas in Southeast Asia. This move also signals that the company’s share trading platform has returned to its home country, where it has grown into a global enterprise. This is especially meaningful, as Oiltek has achieved remarkable results on the Singapore Exchange, one of the region’s most highly recognised trading platforms. Yong views the Malaysian market as a means to further expand access to investors who appreciate the company’s alignment with and commitment to local industry and sustainability priorities, rather than purely financial returns.

Looking ahead, Oiltek’s growth will hinge on three key levers: downstream joint ventures, biomass-based sustainability projects and continuous innovation.

On biomass, Yong is clearly optimistic. He says: “We are excited about the opportunities in this space. These projects may not be huge individually, but returns are strong and the demand, especially from Japanese and Korean buyers, is tremendous.”

Even as the company grows, it remains grounded in its roots in the EPCC (engineering, procurement, construction, and commissioning) segment of the vegetable oil industry. When asked whether Oiltek is a vegetable oil company or a technology company, Yong is unequivocal: “We possess the combined elements of both — fast growth and resilience. We are in agriculture, which is a resilient sector, and we are a tech stock, where high technology and innovation drive a fast growth pace. So, Oiltek is a combination of a tech stock and an agriculture-based company: fast-growing, resilient, and dynamic, with a strong emphasis on sustainability.”