Malaysia increased the export tax on palm oil to 9.5% in April 2026.
The Malaysian Palm Oil Board (MPOB) raised the export duty on crude palm oil to 9.5%, while the base price increased to 3,935.19 ringgit/tonne, putting pressure on export costs.
The Malaysian Palm Oil Board (MPOB) has officially announced an upward adjustment to the export duty rate on crude palm oil (CPO) effective from April 2026. The new rate is set at 9.5%, a 0.5 percentage point increase from the 9.0% rate applied in March 2026.
Details of fluctuations in base price and tax rates.
Along with adjusting the tax rate, the MPOB also announced the reference base price for crude palm oil in April 2026 at 3,935.19 ringgit/tonne (equivalent to US$999.29). This price represents an increase compared to the previous month's figure of 3,896.09 ringgit/tonne (approximately US$998.23).
With the combination of increased tax rates and base prices, the total export tax on crude palm oil in April 2026 reached US$94.93/ton. Based on market data, the actual tax cost paid by businesses increased by 5.67% compared to March.
| Target | March 2026 | April 2026 | Fluctuations |
|---|---|---|---|
| Export tax rate | 9.0% | 9.5% | +0.5% |
| Base price (Ringgit/ton) | 3,896.09 | 3,935.19 | +39.1 |
| Base price (USD/ton) | 998.23 | 999.29 | +1.06 |
| Absolute tax (USD/ton) | 89.84* | 94.93 | +5.67% |
*Estimated values are based on growth differentials published by MPOB.
Analysis of the impact on the commodity market.
Malaysia's tax increase is seen as a move that could alter the supply and demand landscape in the short term. This policy directly increases export costs, which is predicted to potentially curb demand from major international partners such as India and China.
Furthermore, as export demand slows, inventories in producing countries tend to accumulate, leading to a domestic oversupply. Market analysts suggest that this development could reduce upward pressure on spot palm oil prices in the global market, due to increased available stock.
Notably, the increase in the base price to 3,935.19 ringgit/tonne reflects the regulatory authorities' expectations regarding the value of this commodity, despite tariff barriers that may slow the pace of international trade in the coming period.
