InfoSAWIT, KUALA LUMPUR – Malaysia has set its crude palm oil (CPO) reference value for September 2026 at RM4,392.32 per tonne, keeping the country’s CPO export duty at the maximum rate of 10%.

According to a notification published under Malaysia’s Customs Act 1967, the reference value will apply from September 1 to September 30, 2026.

The notification, issued under Section 12 of the Customs Act, sets the value of CPO under subheading 1511.10 0000 at RM4,392.32 per tonne.

The reference price places Malaysian CPO in the highest tier of the country’s export duty structure. Under the applicable schedule, CPO with a free-on-board (FOB) market price above RM4,050 per tonne is subject to a 10% export duty.

CPO Remains in Malaysia’s Highest Export Duty Bracket

Malaysia applies a tiered export duty system for crude palm oil.

No export duty is imposed when the CPO market price falls below RM2,250 per tonne. The duty then increases progressively, ranging from 3% to 9.5%, as prices rise before reaching the maximum 10% rate for prices above RM4,050 per tonne.

With the September 2026 reference value set at RM4,392.32 per tonne, Malaysian CPO remains firmly within the highest export duty bracket.

The export duty structure is an important consideration for industry players as it can influence export costs, trading strategies and the competitiveness of Malaysian palm oil in international markets.

The notification also states that the current CPO export duty structure, which has been effective since November 1, 2024, remains the basis for determining export duty during the September 2026 period.

Malaysia is one of the world’s major palm oil exporters, making changes in its CPO reference price and export tax structure closely watched by the global vegetable oils market.

Movements in Malaysia’s export duty framework can affect trade flows, export pricing and competition between Malaysian palm oil and other major producing countries, including Indonesia.

For the global palm oil industry, Malaysia’s September CPO reference value of RM4,392.32 per tonne will therefore remain an important market indicator as traders and producers assess regional supply, export economics and the competitiveness of palm oil in international markets. (T2)

Source: InfoSAWIT