# Malaysia to raise threshold for palm oil windfall levy next year | Financial Post

> Malaysia will raise the threshold for its palm oil windfall profit levy from next year, lifting the Peninsular Malaysia threshold to 3,000 ringgit from 2,500 and Sabah/Sarawak to 3,500 from 3,000, with a uniform 3% rate. The change was announced in the 2022 budget speech.

- Date: 2021-10-29 · published 2021-10-29T12:00:00.000Z
- Category: policy · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/44419-malaysia-to-raise-threshold-for-palm-oil-windfall-levy-next-year-financial-post
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Higher thresholds leave more profit with planters, supporting production incentives at a time when output is at multi-year lows due to labor shortages. Tighter supply from Malaysia is supportive for palm oil prices and substitute vegetable oils.

## Read by commodity

- SBO: neutral
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2021-10-29 | [Windfall tax threshold for palm oil raised by RM500: 2022 Budget](https://feedsoft.ai/events/44422-windfall-tax-threshold-for-palm-oil-raised-by-rm500-2022-budget.md) | +1.9% | -0.1% |
| PALMOIL | 2023-08-29 | [Malaysia: Effects of windfall profit levy on the palm oil industry](https://feedsoft.ai/events/15711-malaysia-effects-of-windfall-profit-levy-on-the-palm-oil-industry.md) | +1.2% | -3.2% |
| PALMOIL | 2019-12-12 | [Malaysia raises export tax for crude palm oil for first time in over a year - The Business Times](https://feedsoft.ai/events/55463-malaysia-raises-export-tax-for-crude-palm-oil-for-first-time-in-over-a-year-the.md) | -0.0% | +11.2% |
| PALMOIL | 2025-01-06 | [Demand for Malaysian palm oil could rise if Indonesia raises exports levy — TA Securities](https://feedsoft.ai/events/15590-demand-for-malaysian-palm-oil-could-rise-if-indonesia-raises-exports-levy-ta.md) | +0.3% | +0.2% |
| PALMOIL | 2025-03-18 | [Indonesia to raise palm oil export levy to 4.5% to 10%, official says](https://feedsoft.ai/events/15573-indonesia-to-raise-palm-oil-export-levy-to-4-5-to-10-official-says.md) | -0.2% | -5.7% |
| SBO | 2025-08-20 | [Malaysia and Indonesia move to be labeled “low-risk” for palm oil.](https://feedsoft.ai/events/23345-malaysia-and-indonesia-move-to-be-labeled-low-risk-for-palm-oil.md) | +4.4% | +1.7% |
| SBO | 2018-11-26 | [Malaysian palm oil price in biggest fall in 21 months as Indonesia axes export levy \| The Star](https://feedsoft.ai/events/61908-malaysian-palm-oil-price-in-biggest-fall-in-21-months-as-indonesia-axes-export.md) | +0.6% | +0.3% |
| 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% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/malaysia-to-raise-threshold-for-palm-oil-windfall-levy-next-year

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