Frankly Speaking: Malaysia must act fast or risk losing out
02/11/2026 (KLSE Screener) - Malaysia cannot afford to drag its feet on a proposal to temporarily suspend crude palm oil (CPO) export duties as the industry grapples with mounting stockpiles and intensifying competition from Indonesia.
Last week, Plantation and Commodities Minister Datuk Seri Noraini Ahmad said her ministry held an engagement session with industry players on Oct 20 to receive feedback on the plan. However, she clarified that any decision on an exemption or deferment of the tax falls under the Ministry of Finance, which was also represented at the meeting.
The urgency is clear. Malaysia’s palm oil stock surged to a record 3.51 million tonnes in September, driven by all-time high monthly production alongside a slowdown in export demand. Industry players called for a three- to five-month suspension of CPO export duties to stimulate shipments, ease inventories and improve industry competitiveness.
Currently, Malaysia imposes export duties of between 3% and 10% on CPO when prices exceed RM2,250 per tonne, with the maximum rate applying above RM4,050. The duty remained at 10% for November, based on a reference price of RM4,323.78.
A temporary waiver could give Malaysian palm oil exporters greater pricing flexibility and help the country protect and reclaim market share from Indonesia, the world’s largest palm oil producer.
Discussions on the proposal have been ongoing since October. With November already here, the government should avoid further delays and make a prompt decision.
This is not a call for a permanent tax exemption but a temporary measure to help the industry navigate an exceptional supply situation. The waiver could remain in place until inventories return to a more manageable level.
In a highly competitive global market, timing matters. Malaysia must act decisively now or risk allowing Indonesia to widen its advantage.
Malaysia palm oil prices decline 0.49% as crude oil slump weighs on biodiesel demand
02/11/2026 (Bio Energy Times) - Malaysia’s benchmark palm oil futures declined on Monday as falling crude oil prices weighed onthe biodiesel demand outlook, although gains in rival edible oils in China limited the losses,Finimize reported.
The benchmark January palm oil futures contract on Bursa Malaysia Derivatives Exchange fell0.49% to 4,658 ringgit per metric tonne, according to Reuters. Crude oil prices dropped morethan 1%, reducing the competitiveness of palm-based biodiesel against conventional diesel.
Lower crude oil prices generally weaken the economics of biodiesel production, limiting the ability
of producers to pay higher prices for palm oil as feedstock.
However, gains in competing edible oils provided some support. China’s Dalian soyoil futures rose
0.7%, while Dalian palm oil futures gained 0.85%. US soyoil futures on the Chicago Board of
Trade also edged up 0.18%.
The strength in rival edible oils could support palm oil prices through substitution demand, as food
manufacturers and buyers switch between different vegetable oils depending on relative prices.
A weaker Malaysian ringgit also offered some support by making palm oil exports more
competitive in dollar terms. Additionally, private surveyors estimated a sharp increase in Malaysian
palm oil product exports in October, providing another positive factor for the market.
Market sentiment remains influenced by competing factors, with weaker crude oil prices weighing
on the biodiesel demand outlook while stronger soyoil prices, a weaker ringgit and improved
export prospects helping limit the downside.
Traders are expected to monitor movements in crude oil and competing vegetable oils for further
direction in the palm oil market.