Government unveils RM3,150 levy for palm oil in Peninsular Malaysia

In a bid to bolster the country’s palm oil sector, the Government of Malaysia has announced several significant measures in Budget 2025. The proposed changes include raising the threshold for the extraordinary profit levy on fresh fruit bunches of oil palm to RM3,150 for Peninsular Malaysia and RM3,650 for Sabah and Sarawak. Additionally, the market price range and export duty rates for crude palm oil will be reviewed starting 1 November 2024, while maintaining current export conditions for crude palm oil from Sabah and Sarawak. To further support smallholders, the government will continue to offer incentives for replanting non-productive palm oil trees, allocating RM100 million for this initiative. Malaysia, as one of the world’s largest palm oil producers, is also set to explore the potential of producing sustainable aviation fuel (SAF) from palm oil mill waste. Petronas is collaborating with SD Guthrie and FGV Holdings Berhad for this initiative. Furthermore, the government has ...