Trade and markets
 

Detail

Area
Malaysia
Commodity Group
Oilseeds, oils and meals
Commodity
Palm oil
Date
01/01/2018
Policy Category
Trade
Policy Instrument
Export policy
Description
Suspended the country\'s sliding tax on crude palm oil exports from 8 January 2018 to end-April 2018, in a bid to stimulate international demand for Malaysian palm oil, curb domestic stocks and support local prices.
Notes
Malaysia decided to suspend its variable tax for a period of three months, starting 8 January 2018 (although taxation would be reintroduced if domestic palm oil stocks were to drop below 1.6 million tonnes). The tax suspension was implemented in a bid to stimulate international demand, curb domestic stocks and support the price of Malaysian palm oil. The latter has fallen to 16-month lows in December 2017, while inventories climbed to two-year highs. By making Malaysian palm oil more competitive, the tax suspension has prompted a conspicuous rise in the country’s shipments since last January, in particular with regard to sales to price sensitive markets such as India and China.