InfoSAWIT, KUALA LUMPUR — The Malaysian government has announced an increase in the reference price for crude palm oil (CPO) for August 2025, resulting in a direct rise in the export duty to 9 percent. This information was disclosed in an official circular posted on the Malaysian Palm Oil Board (MPOB) website on Thursday, July 17.

The new reference price is set at 3,864.12 ringgit per metric ton, equivalent to approximately US$910.28. This figure marks an increase from the reference price in July, which was recorded at 3,730.48 ringgit per ton, attracting an export duty of 8.5 percent.

This adjustment brings Malaysia's export duty closer to the maximum limit established within the country's palm oil export tax structure. Under this structure, the duty starts at 3 percent when the CPO price ranges between 2,250 and 2,400 ringgit per ton, gradually increasing with rising prices. A maximum rate of 10 percent will be applied if the reference price exceeds 4,050 ringgit per ton.

According to InfoSAWIT, citing Business Recorder on Friday, July 18, 2025, this adjustment reflects the recent trend of strengthening CPO prices in the global market, driven by high export demand from major consumer countries such as India and China, as well as supply uncertainties from other producing nations.

As the world's second-largest CPO exporter after Indonesia, Malaysia's export tax policy is a crucial indicator closely monitored by global industry players, including entrepreneurs, exporters, and buyers in the international market.

The increase in the reference price and export duty is expected to impact the competitiveness of Malaysian CPO prices in the global market. However, on the flip side, the rise in export duties could provide additional revenue for the government while serving as a tool to regulate exports to ensure domestic supply availability. (T2)