Malaysia Keeps 10% Export Duty on Palm Oil After Price Hike
19-Sep-2025 03:36 PM
Kuala Lumpur. Malaysia has announced the retention of a 10% export duty on crude palm oil (CPO) for October shipments. A statement from the government body, the Malaysian Palm Oil Board (Ampob), stated that CPO for October has been assessed at a higher level, consistent with the 10% export duty.
It is noteworthy that Malaysia is the world's second-largest producer and exporter of palm oil after Indonesia, and India imports a significant amount from there.
Ampob has estimated the reference price of crude palm oil for October 2025 at 4268.68 ringgit per tonne, higher than the reference price of 4053.43 ringgit per tonne set for September.
According to the export duty structure prevalent in Malaysia, when the reference price of crude palm oil (CPO) is between 2250-2400 ringgit per tonne, an export duty of 3% will be levied.
This is the initial level of export duty. Subsequently, as the reference price increases, the level of export duty will also increase.
The maximum rate is set at 10%, which will be applicable with a reference price of 4050 ringgit per tonne. This means that if the reference price of CPO is above 4050 ringgit (regardless of its level), a 10% export duty will be applicable. Similarly, if the reference price remains below 2250 ringgit per tonne, no export tax will be levied on CPO.
The Indian market is extremely important for Malaysia, as it exports a large quantity of palm oil to India every year.