InfoSAWIT, KUALA LUMPUR – In December 2023, the Government of Malaysia decided to maintain crude palm oil (CPO) export duty, 8% though the government escalated CPO reference price, according to the official information from Malaysian Palm Oil Board (MPOB), Thursday (23/11/2023).

To encourage and support palm oil industries in the country, Malaysia as the second biggest palm oil producer in the world decided that CPO reference price would be RM 3.589,09 (US$ 767,23) per metric ton in December 2023. The numbers increased from November ones that reached RM 3.556,08 per ton.

CPO export tax in the country was formulated carefully. The tax starts from 3% for CPO (which would be sold) at RM 2.250 to RM 2.400 per ton. Then it increased up to the maximal tariff – 8% if CPO (to be trade) at more than RM 3.450 per ton. By the policy, Malaysia wanted to balance the revenue from palm oil exports while delivering flexibility to respond market price change in the globe.

As quoted from Reuters, the decision also considered the market change, including commodity price fluctuation, market demands on CPO globally. By maintaining CPO export tax at 8%, the Government of Malaysia hoped to get stable revenue by maintaining competitiveness in the markets globally. (T2)