“The move also aims to boost processing and downstream activities to produce higher value-added products such as biodiesel and oleochemicals,” it said.

According to an appendix released alongside the Budget 2025 presentation, MoF announced that the revised CPO export duty rates will take effect on Nov 1.

The export duty for CPO priced at RM2,250 per metric tonne and below will remain at 0%, followed by 3% for prices between RM2,250 and RM2,400, 4.5% for RM2,401-RM2,550, 5.5% for RM2,551-RM2,700, and 5.5% for RM2,701-RM2,850.

The rate will increase to 6% for CPO priced between RM2,851 and RM3,000, and 6.5% for prices between RM3,001 and RM3,150.

For CPO priced between RM3,151 and RM3,300 per metric tonne, the export duty will be set at 7%, followed by 7.5% for RM3,301-RM3,450, 8% for RM3,451-RM3,600, 8.5% for RM3,601-RM3,750, 9% for RM3,751-RM3,900, and 9.5% for RM3,901-RM4,050.

The rate will be 10% for CPOs priced above RM4,050 per metric tonne.

To further support the sustainability of the palm oil industry, MoF proposed revising the windfall profit levy threshold to 3% for Peninsular Malaysia and Sabah and Sarawak.

The new threshold prices will be set at RM3,150 per metric tonne for Peninsular Malaysia and RM3,650 for Sabah and Sarawak, effective Jan 1, 2025.