The world’s second-largest producer and exporter of palm oil had last imposed an export tax of 4.5 percent in August 2018 before lowering it to zero. It then placed a tax-free exemption on crude palm oil from May to December 2019 to boost palm oil exports and expand into new markets.
Malaysia calculated a palm oil reference price of 2,571.16 ringgit (US$616.59) per tonne for January next year.
A Kuala Lumpur-based trader said Malaysia will export more refined products as crude palm oil will now have 5 percent tax.
Malaysian benchmark palm oil futures were up 1 percent at 2,913 ringgit per tonne in early trade on December 13.
Traders also predicted that Indonesia may follow Malaysia’s footsteps to impose a similar tax on export of this product.