Detail

Malaysia

Oilseeds, oils and meals

Palm oil

01/06/2019

Trade

Export policy (variable export tax)

Extended the suspension of the country’s sliding tax on crude palm oil exports until 31 December 2019 – irrespective of price developments. First implemented in September 2018 (following a marked decline in the commodity’s world market price), the suspension is aimed at improving the export competitiveness of Malaysian palm oil and encouraging sales to new markets, while helping to lower the nation’s stockpiles.

In Malaysia, where palm oil benchmark prices have ranged below the threshold that triggers export taxation since September 2018, the Government decided to keep the tax exemption in place until 31 December 2019 – irrespective of price developments. The measure is aimed at improving the export competiveness of Malaysian palm oil and encouraging sales to new markets (notably in Africa, the Middle East and the Russian Federation), while helping to lower the nation’s stockpiles. Government officials pointed out that, in addition to facing low prices, oil palm growers are affected by a shortage of foreign workers.