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2026-11-04 11:16:25
[Malaysian industry calls for temporary exemption of CPO export tax to cope with low-price competition and high inventory from Indonesia] (1) According to foreign media reports, as independent crushing plants struggle to clear their inventory, industry insiders are urging the government to temporarily suspend the 10% CPO export tax, arguing that the tax further weakens Malaysia's competitiveness relative to cheaper Indonesian supplies. (2) According to industry estimates, Indonesian CPO is 700 to 900 ringgit cheaper per ton than Malaysian CPO. (3) Malaysia imposes a tiered export tax of 3% to 10% on CPO priced above 2,250 ringgit per ton; when the price exceeds 4,050 ringgit per ton, the highest tax rate of 10% applies. In November, based on a reference price of 4,323.78 ringgit per ton, the export tax remained at 10%. (4) Industry insiders believe that a temporary exemption could narrow the price gap, making Malaysian CPO more attractive to overseas buyers and helping to reduce domestic inventory. (5) They also questioned why Malaysia continued to import palm oil despite record domestic inventories; MPOB data shows that the country imported a total of 107,588 tons of palm oil in August and September. (6) It is understood that the Malaysian Palm Oil Refiners Association (Poram) has been lobbying the Ministry of Plantation Industries and Commodities to temporarily suspend export taxes.
