KUALA LUMPUR: Bursa Malaysia Bhd said on Friday it is seeking industry feedback on a plan to launch a new futures contract for used cooking oil, a key ingredient in producing renewable biofuels.

"Bursa is looking to offer a new futures contract for used cooking oil, which is currently undergoing industry consultation and is subject to regulatory approval," the local bourse operator said in a statement to Reuters.

The exchange did not provide further details of the proposal, which was first reported by Bloomberg on Thursday.

Specifications of the futures contract have been shared with industry participants, Bloomberg reported, citing sources and a copy of the proposed guidelines it had seen.

Malaysia, the world's second-largest producer of palm oil, exported nearly 300,000 metric tons of biodiesel last year, while domestic consumption stood at around 1.1 million tons.