Malaysia plans to raise the threshold for a windfall profit levy on palm oil and will revise the export duty for crude palm oil, Prime Minister Anwar Ibrahim said on Friday.

Anwar said the government plans to raise the threshold for the windfall profit levy to 3,150 ringgit ($732.22) for Peninsular Malaysia, and 3,650 ringgit ($848.44) for Sabah and Sarawak, the country's largest palm oil producing states. Anwar did not say when the plan would be implemented.

Malaysia, the world's second largest palm oil exporter, currently imposes a windfall levy of 3% on palm oil prices above 3,000 ringgit per metric ton in Peninsular Malaysia and above 3,500 ringgit per ton in Sabah and Sarawak.

Malaysia's crude palm oil export duty rates and market price range structure will be revised from Nov. 1, Anwar said when tabling the 2025 budget in parliament.

The government will also allocate 100 million ringgit to encourage small farmers to replant and replace ageing oil palm trees.

Anwar welcomed offers by major palm oil companies, SD Guthrie Bhd, United Plantations Bhd, TH Plantations Bhd, Kuala Lumpur Kepong Bhd, and IOI Corporation Bhd, to assist small farmers to improve planting practices and raise their incomes. ($1 = 4.3020 ringgit)

(Reporting by Ashley Tang Editing by Christina Fincher)