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Tuesday, 20 October 2026

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Malaysia Has Record Palm Oil Stocks. Selling More Is Not the Only Answer

Malaysia's record palm oil inventories have prompted discussion of export tax relief, but the industry's longer-term challenges require broader solutions.

By Katherine (Kay)3 min read

Kuala Lumpur, 20 October 2026 – Malaysia’s palm oil industry is facing an unusual challenge. While the country remains one of the world’s largest producers, inventories have climbed to record levels, increasing pressure to move more supply into international markets.

On 20 October, Bloomberg reported that Malaysia was considering temporarily waiving crude palm oil export taxes to encourage shipments.

The proposal follows September inventories reaching approximately 3.5 million tonnes, with industry representatives expected to discuss possible measures with the government.

Malaysia currently applies a tiered crude palm oil export duty, with the November rate set at 10%. A temporary waiver could make Malaysian exports more competitive against Indonesian supplies.

However, no final decision has been confirmed.

The real question is whether temporary tax relief can improve the industry’s position beyond clearing today’s excess stocks.

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Author

  • Kay like to explores the intersection of money, power, and the curious humans behind them. With a flair for storytelling and a soft spot for market drama, she brings a fresh and sharp voice to Southeast Asia’s business scene.
    Her work blends analysis with narrative, turning headlines into human stories that cut through the noise. Whether unpacking boardroom maneuvers, policy shifts, or the personalities shaping regional markets, Kay offers readers a perspective that is both insightful and relatable — always with a touch of wit.