Area
Malaysia
Commodity Group
Oilseeds, oils and meals
Commodity
Palm oil
Date
01/06/2020
Policy Category
Trade
Policy Instrument
Export policy (COVID-19 related)
Description
Suspended the countrys export tax on palm oil, following protracted weakness in the commoditys market price. The suspension, which would last from June to December 2020, is aimed at aiding the sectors recovery from the COVID-19 crisis through the facilitation of exports.
Notes
MALAYSIA variable export tax (palm oil): For the month of June, Malaysias progressive export tax for palm oil was lowered to zero, as the respective benchmark price fell below the RM 2 250 per tonne (USD 527) threshold that triggers taxation. World palm oil prices plunged by about 35 percent between January and May 2020, when they lingered around 10-month lows, due to a decline in global demand resulting from worldwide lockdown measures to slow the spread of COVID-19. In June, the Government decided to exempt all palm oil products (including crude palm oil and crude/refined palm kernel oil) from the export duty from July to December 2020, in a bid to stimulate exports and thus accelerate the sectors recovery from the COVID-19 crisis. The measure is part of an economic stimulus package to assist industries hit by the pandemic.
