KUALA LUMPUR, July 2 — The Plantation and Commodities Ministry plans to review the windfall profit levy (WPL) on palm oil in Malaysia in Budget 2025, aligning it with current palm oil prices.
Its minister Datuk Seri Johari Abdul Ghani said his ministry will work with the Malaysian Palm Oil Board (MPOB) to review the WPL.
“It used to cost about RM1,800 to produce one tonne of palm oil, but if you want to produce one tonne of palm oil now, it can cost RM2,800 to RM3,200 depending on the size.
“It might be suitable to implement WPL when it costs RM1,800 as a formula. But now, it is not suitable when the market trades at about RM3,800 to RM3,900 a tonne with a cost of more than RM3,000,” he said during a question-and-answer at the Dewan Rakyat today.
He was replying to Bakri Jamaluddin’s (PN-Tangga Batu) supplementary question about the WPL as to how industry players can benefit from efforts to speed up the replanting process of oil palm.
Earlier, the ministry had looked into the WPL issue raised by industry players and held consultations with relevant parties.
The WPL rate of 3 per cent is imposed on palm oil prices above RM3,000 per tonne in Peninsular Malaysia and above RM3,500 a tonne in Sabah and Sarawak.
— Bernama
