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 pr

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 totalled 107,588 tonnes. The Malaysian Palm Oil Refiners Association (Poram) has lobbied the Ministry of Plantation and Commodities for a temporary suspension of the export tax.