Industry groups have urged the government to temporarily suspend the 10% export
tax on crude palm oil (CPO), saying independent crushers are struggling to clear
inventories and the levy further weakens Malaysia's competitiveness against
cheaper Indonesian supply. Industry estimates Indonesian CPO is 700–900
ringgit/tonne cheaper. Malaysia applies a tiered export tax of 3–10% on CPO
priced above 2,250 ringgit/tonne, with the 10% top rate applying above 4,050
ringgit/tonne; November's reference price was 4,323.78 ringgit/tonne, keeping
the tax at 10%. Lobbyists say a temporary exemption would narrow the price gap,
boost appeal to overseas buyers and help reduce record domestic stocks, and they
questioned why Malaysia continues to import palm oil amid high inventories. MPOB
data show August–September imports totaled 107,588 tons. The Malaysian Palm
Oil Refiners Association (Poram) has lobbied the Ministry of Plantation and
Commodities for a temporary suspension of the export tax.
