Malaysia has set its export tax for crude palm oil at 10% for May, according to a circular published on the Malaysian Palm Oil Board website on Tuesday. The country, the world’s second-largest palm oil exporter, also adjusted its reference price downward for the month.

The reference price for May is 4,449.35 ringgit ($1,008.47) per metric ton, a decrease from April’s reference price of 4,547.79 ringgit per ton. This adjustment reflects market conditions and aligns with Malaysia’s export tax framework for crude palm oil.

The tax structure begins at 3% for crude palm oil priced between 2,250 and 2,400 ringgit per ton. The rate increases progressively, reaching a maximum of 10% when prices surpass 4,050 ringgit per ton. The May reference price, exceeding this threshold, triggers the highest tax rate.

This policy supports Malaysia’s efforts to balance its palm oil export market while maintaining economic stability. The country continues to play a significant role in global palm oil supply, meeting demand across various industries.