Malaysia Maintains 10% Export Tax on CPO for June

15-May-2026 03:15 PM

Kuala Lumpur. In Malaysia—the world's second-largest producer and exporter of palm oil after Indonesia—the export tax on Crude Palm Oil (CPO) for June 2026 has been maintained at the 10 percent level, consistent with May, based on the reference price. Although the reference price was assessed at 4,521.89 Ringgit per tonne for May, it has been assessed at 4,372.64 Ringgit per tonne for June; however, in accordance with the regulations prevailing in Malaysia since November 1, 2024, if the reference price of CPO exceeds 4,050 Ringgit per tonne, a 10 percent export tax automatically becomes applicable.

According to the prevailing regulations, if the reference price of CPO remains below 2,250 Ringgit per tonne, no export tax will be levied. If the reference price falls between 2,250 and 2,400 Ringgit per tonne, a 3 percent export tax will be applicable.

This serves as the base level for the reference price regarding the export tax; as the reference price increases beyond this point, the export tax also rises correspondingly. However, an upper limit of 10 percent has been established, which becomes effective for reference prices exceeding 4,050 Ringgit per tonne.

Malaysia's palm oil export performance is currently sluggish. Due to high futures prices for CPO in the country, demand has weakened in numerous importing nations, including India.

Furthermore, the suspension of shipping traffic through the Strait of Hormuz is adversely impacting the export of Malaysian palm oil to countries in West Asia, the Middle East, and the Gulf region. The high export tax is also exacerbating these challenges.