Malaysia to suspend export tax on palm oil for 3 months

Putrajaya announces a 'short-term measure' to protect smallholders' income.

KUALA LUMPUR: Malaysia, the world’s second-largest palm oil producer, will suspend export taxes on crude palm oil for a three-month period starting Monday to boost prices, the government said.

The export tax suspension will be lifted before the three-month period if crude palm oil stocks fall to 1.6 million tonnes, Plantation Industries and Commodities Minister Mah Siew Keong said at a press conference today.

“(The scheme) is one of the short-term pre-emptive measures by the government to manage the fall in crude palm oil prices, so that the smallholders’ income are not impacted and the country’s oil palm industry continues to be competitive,” said Mah. -FMT