PALMOILMAGAZINE, KUALA LUMPUR — The Malaysian government has announced an increase in the crude palm oil (CPO) reference price for August 2025, resulting in a higher export duty rate of 9 percent. The decision was made official through a circular published on the Malaysian Palm Oil Board (MPOB) website on Thursday.
The new reference price has been set at 3,864.12 ringgit per metric ton (approximately US$910.28), up from 3,730.48 ringgit per ton in July, when the export duty stood at 8.5 percent.
With this adjustment, Malaysia’s CPO export tax moves closer to the country’s maximum export duty threshold. Under Malaysia’s export tax structure, the duty begins at 3 percent when CPO prices fall between 2,250 and 2,400 ringgit per ton and increases incrementally as prices rise. The maximum rate of 10 percent applies when the reference price exceeds 4,050 ringgit per ton.
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As reported by Palmoilmagazine.com citing Business Recorder on Friday (July 18, 2025), the price hike reflects a recent upward trend in global CPO prices. This has been fueled by strong export demand from major consumer countries such as India and China, alongside supply uncertainties in other palm oil-producing nations.
As the world’s second-largest CPO exporter after Indonesia, Malaysia’s export tax policy serves as a key market signal for global industry stakeholders—including producers, traders, and buyers.
While the higher reference price and export duty may impact Malaysia’s competitiveness in the global market, the policy is also expected to bolster government revenue and help manage domestic supply by discouraging excessive exports. (P2)
