Malaysia CPO tax waivers could lift plantation stocks as inventory hits record high
KUALA LUMPUR: Malaysia’s plantation sector could receive a timely boost if the government waives crude palm oil (CPO) export tax to help clear swelling inventories, restore export competitiveness and claw back market share from Indonesia.
Malaysia's plantation sector could see a boost if the government waives crude palm oil (CPO) export tax, according to analysts. The Plantation and Commodities Ministry is expected to discuss this proposal with industry players amid a record high inventory of 3.5 million tonnes. PublicInvest analyst Chong Hoe Leong believes the waiver could benefit upstream plantation companies, making Malaysian palm oil more competitive in international markets.
With Indonesia's exports gaining ground, Malaysia is struggling with mounting inventories and a wide discount between Malaysian and Indonesian CPO prices. A waiver could help narrow the competitiveness gap, provide relief to local exporters, and support stronger earnings for plantation companies in the second half of 2026. However, the benefits may not be evenly distributed, with downstream players potentially facing margin pressure.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
