# EXCLUSIVE: Exclusive: Malaysia may cut palm oil export tax by half amid global supply crisis | Reuters

> Malaysia's commodities ministry has proposed cutting its palm oil export tax by as much as half, from 8% to 4%-6%, to help address a global edible oil shortage. The temporary measure would also slow implementation of the B30 biodiesel mandate to prioritise supply for food use.

- Date: 2022-05-10 · published 2022-05-10T12:00:00.000Z
- Category: policy · region Malaysia · magnitude high
- Page: https://feedsoft.ai/events/15819-exclusive-exclusive-malaysia-may-cut-palm-oil-export-tax-by-half-amid-global
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A lower export tax would encourage Malaysian exports and add supply to a tight global vegetable oil market, while slowing the biodiesel mandate reduces domestic palm oil demand for fuel, both bearish for palm oil prices and supportive for soy oil substitution demand.

## Read by commodity

- SBO: neutral
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-05-09 | 5 | -10.5% | -3.0 | Proposed Malaysian palm oil export tax cut and slower B30 mandate would raise exportable supply and cut biofuel demand, bearish for palm prices around May 9-10. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2018-12-26 | [Malaysia reviewing palm oil export taxes amid bulging stockpiles](https://feedsoft.ai/events/61466-malaysia-reviewing-palm-oil-export-taxes-amid-bulging-stockpiles.md) | +5.0% | +7.8% |
| PALMOIL | 2018-04-01 | [Malaysia: Export duty on crude palm oil reintroduced from May 2018 - Global Trade Alert](https://feedsoft.ai/events/65413-malaysia-export-duty-on-crude-palm-oil-reintroduced-from-may-2018-global-trade.md) | +3.4% | -0.1% |
| PALMOIL | 2022-05-20 | [Malaysia to reduce palm oil export tax, biodiesel mandate](https://feedsoft.ai/events/15820-malaysia-to-reduce-palm-oil-export-tax-biodiesel-mandate.md) | +2.6% | -7.0% |
| PALMOIL | 2021-02-18 | [VEGOILS-Palm oil slumps 4% on demand concerns, high export tax By Reuters](https://feedsoft.ai/events/48723-vegoils-palm-oil-slumps-4-on-demand-concerns-high-export-tax-by-reuters.md) | -0.4% | +8.5% |
| PALMOIL | 2026-10-28 | [Malaysia palm oil export tax waiver: what it means \| Peepals](https://feedsoft.ai/events/166-malaysia-palm-oil-export-tax-waiver-what-it-means-peepals.md) | -1.4% | — |
| SBO | 2022-05-20 | [Malaysia to reduce palm oil export tax, biodiesel mandate](https://feedsoft.ai/events/15820-malaysia-to-reduce-palm-oil-export-tax-biodiesel-mandate.md) | -0.4% | -7.6% |
| SBO | 2018-02-12 | [Export tax freeze to support Malaysian palm oil industry - Oxford Business Group](https://feedsoft.ai/events/66368-export-tax-freeze-to-support-malaysian-palm-oil-industry-oxford-business-group.md) | -1.3% | -1.3% |
| SBO | 2021-02-18 | [VEGOILS-Palm oil slumps 4% on demand concerns, high export tax By Reuters](https://feedsoft.ai/events/48723-vegoils-palm-oil-slumps-4-on-demand-concerns-high-export-tax-by-reuters.md) | +6.6% | +18.5% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/exclusive-malaysia-may-cut-palm-oil-export-tax-amid-global-supply-crisis-2022-05-10/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.