Arus Oil founder and CEO Syazwan Majid
From a grassroots community initiative to a game-changer in Malaysia’s waste-to-energy sector, Arus Oil is tackling one of the country’s most overlooked environmental issues: improper disposal of used cooking oil (UCO). Backed by 1337 Ventures, the startup is building a tech-driven circular economy, connecting households and businesses with biodiesel refineries to transform waste into clean energy.
In this Q&A, founder and CEO Syazwan Majid shares insights on Arus Oil’s journey, the challenges of scaling a sustainable business, and the role of AI-powered logistics and digital incentives in driving industry-wide adoption.
Edited excerpts:
What inspired you to start Arus Oil, and how did it evolve from a community-driven initiative to a full-fledged business?
Arus Oil was founded to tackle a widespread and overlooked environmental issue: improper disposal of used cooking oil (UCO). We began as a community initiative to raise awareness and later evolved into a business opportunity when we realised households and businesses lacked convenient, rewarding ways to recycle UCO.
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We saw a gap in the market: biodiesel refineries needed a steady supply of UCO, but the collection process was fragmented. We created an efficient, tech-driven collection network to transform a waste problem into an energy solution, bridging households, F&B businesses, and biodiesel producers in a seamless ecosystem.
Can you explain how your waste-to-energy process works and how the collected UCO is converted into biofuel? What makes it different from other waste-to-energy startups?
Our process begins with collecting UCO from households, restaurants, and food manufacturers. The oil is then filtered and refined to remove impurities before being supplied to biodiesel refineries. Through a transesterification process, it is converted into biodiesel, a cleaner-burning alternative to fossil fuels.
We leverage digital tracking and automated payment systems, ensuring full transparency from collection to conversion. Unlike traditional players, we integrate both household and commercial waste streams while making participation rewarding through our incentive-driven platform.
How does Arus Oil leverage digital platforms and mobile technology to streamline waste collection and payments?
We have developed a user-friendly mobile platform that allows customers to schedule pickups, track their contributions and carbon savings, and receive instant payments. The app also features a real-time dashboard for collectors, optimising routes and reducing operational costs.
Our traceability system ensures transparency and builds trust among consumers and industry stakeholders.
What are the biggest challenges you’ve faced in scaling the company, and how have you overcome them?
One of our biggest challenges has been changing consumer behaviour—encouraging households and small businesses to recycle their UCO rather than dispose of it improperly. To address this, we introduced financial incentives, a seamless digital platform, and strategic collection points in high-traffic locations.
Another major challenge was logistics efficiency and cost. Unlike traditional waste collection, UCO requires specialised handling. We are tackling this by integrating AI-powered sensors and predictive analytics into our collection infrastructure.
Our hardware solutions provide real-time data on fill levels and contamination, allowing for automated scheduling, on-demand collections and on-time payments. This enhances accessibility for waste generators by ensuring timely pickups while minimising logistics costs and environmental impact.
Could you share more about your key corporate partnerships and how they contribute to Arus Oil’s growth?
We have established key partnerships with communities, corporates, hypermarkets, shopping malls and F&B chains, integrating our UCO collection model into their sustainability programmes. These collaborations enhance consumer awareness and provide us with strategic collection points and access to large customer bases.
Additionally, we work closely with biodiesel refineries, ensuring a steady demand for our collected UCO and strengthening our supply chain. Our key partners include Shell, IPC Shopping Centre (IKANO), TNG eWallet, Lit & Lull, and IOI Properties.
Are there any upcoming tech innovations or features you plan to introduce to enhance efficiency or user experience?
We are developing AI-powered hardware solutions to improve accessibility for waste generators and optimise logistics. These innovations will enable real-time monitoring of collection points, ensuring timely pickups while minimising inefficiencies.
Additionally, we are working on AI-driven route optimisation to enhance logistics efficiency and reduce fuel consumption. Our digital tracking system will further strengthen traceability, ensuring every litre of UCO is verifiable from source to refinery.
Currently, Arus Oil operates primarily in Klang Valley. Are there plans to expand nationwide or into other Southeast Asian markets?
We have already expanded operations to Sabah and Brunei and are actively exploring other states in Malaysia, as well as regional markets like Vietnam, the Philippines, Cambodia, Indonesia and Thailand.
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Given the scalability of our model, we aim to establish strategic collection hubs across Southeast Asia.
What are the next steps for Arus Oil in terms of scaling operations and increasing waste-to-energy adoption?
Our focus is on increasing collection volumes, expanding partnerships, and enhancing our digital infrastructure. Key initiatives include deploying more collection points and introducing AI-powered hardware solutions, making UCO drop-offs even more convenient.
Additionally, we are engaging with policymakers to advocate for mandatory UCO recycling regulations, further driving industry growth.
Do you foresee regulatory challenges or opportunities in growing the waste-to-energy sector in Malaysia and beyond?
Regulations present both challenges and opportunities. While restrictions on UCO exports exist, governments are increasingly prioritising sustainable energy solutions. We see a major opportunity to collaborate with regulatory bodies to develop industry standards and incentive programs, positioning Arus Oil as a key player in shaping the waste-to-energy landscape in Malaysia and beyond.
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