Malaysia cuts export duty on palm oil for January

17-Dec-2025 08:23 PM

Kuala Lumpur. Malaysia has lowered the reference price for crude palm oil (CPO) for January 2026, which will naturally lead to a reduction in its export duty. In Malaysia, the world's second-largest producer and exporter of palm oil,

the reference price for CPO for January 2026 has been set at 3946.17 ringgit (US$966.25) per ton, and the export duty has been reduced to 9.5 percent.

Previously, for December 2025, the reference price for CPO was set at 4206.38 ringgit per ton, keeping the export duty at the maximum level of 10 percent.

According to the prevailing rules, an export duty is levied in Malaysia when the reference price of CPO is 2250 ringgit per ton or higher.

Under this system, a 3 percent tax is applied to a reference price of 2250 to 2400 ringgit per ton. This is the base rate, and the export duty increases as the reference price rises. However, a maximum limit of 10 percent has also been set.

When the reference price of crude palm oil is 4000 ringgit per ton or higher, a 10 percent export duty is applied. Since the reference price for January 2026 is below 4000 ringgit per ton, an export tax of only 9.5 percent will be levied.

This will help Malaysian exporters keep their CPO export offer prices at a more competitive level. Benchmark futures prices for CPO in Malaysia are under pressure due to high production and large stocks.