Palm oil shares tumble on sudden 154% spike in foreign worker levy

Malaysian palm oil futures fell on Thursday to reverse its morning session of gains as demand for the vegetable oil wanes on slowing exports.

PETALING JAYA: The 154% rise in the levy for foreign workers in the plantation sector has taken a toll on oil palm stocks whose landbank is concentrated in Malaysia.

Due to the labour-intensive nature of the industry, the rise in the levy from RM590 to RM1,500 per month will see planters forking out an additional RM910 per worker.