Malaysia Weighs Waiving Crude Palm Oil Export Tax: Inventories Hit a Record 3.5 Million Tonnes in September as Ministry Prepares Talks With Industry
Malaysia is considering temporarily waiving its export tax on crude palm oil (CPO) to boost shipments and whittle down record-high inventories, Bloomberg reported. Senior officials at the Ministry of Plantation and Commodities were due to meet top industry executives on Tuesday to discuss suspending the levy. Malaysia is the world's second-largest palm oil producer.
Malaysia's palm oil inventories climbed to a record 3.5 million tonnes in September. Exports of crude palm oil currently face a multi-tier tax of 3.0% to 10% when prices exceed RM2,250 per tonne, with the maximum rate applying above RM4,050; based on the November reference price of RM4,323.78 per tonne, the duty stays at 10%.
Analysts note that the 10% tax amounts to about RM450 per tonne, while Indonesian palm oil still trades RM700 to RM900 per tonne cheaper than Malaysian supplies. Harald Sippel, executive director of ESG Malaysia, said that even if every ringgit of a waiver were passed on to buyers, it would close only half to two-thirds of that gap, though it could lift shipments in the short term to price-sensitive markets such as India. Chong Hoe Leong, an analyst at Public Investment Bank, said a waiver could help Malaysia regain market share from Indonesia, which set its combined palm oil export tax and levy at US$308 per tonne for October.
Malaysia previously waived its CPO export tax for six months in 2020. Whether the waiver will be implemented, and for how long, awaits a formal government decision. (Compiled from Bloomberg reporting, summarized by Malaysia's Business Times and The Edge on October 21)
Source: GSM · USA (original Chinese edition)
Photo: 马来西亚柔佛州丰盛港县的油棕种植园实景。图片来源：Wikimedia Commons 文件 Oil palm plantation in Mersing District.jpg，Wee Hong 摄，CC BY-SA 4.0 授权
