Former prime minister Najib Abdul Razak wants the Pakatan Harapan government to resume the previous government's policy of suspending the five percent export tax on crude palm oil.

Najib said he was making this call after hearing the plight of Felda settlers and smallholders at his constituency of Pekan over the Hari Raya Aidilfitri holidays.

He said the palm oil exports had fallen by up to 20 percent in the first 10 days of June this year.

"One of the factors for the fall was the government's move to reimpose a five percent tax on palm oil exports. Market analysts have said this is the main factor for the fall in demand and prices.

"Before this, the BN government had suspended the tax for the first four months of this year to ensure the income of smallholders was not affected and for Malaysian palm oil can remain competitive in the international market.

"On behalf of the smallholders in Pekan and (Felda) settlers in Malaysia, I urge the Harapan government to suspend the import tax again until the end of the year or at least until demand recovers," he said.

According to Reuters, the five percent export tax on crude palm oil resumed in May, the same month the general election took place.

On a related matter, Najib said Malaysia can no longer remain silent over the European Union's (EU) decision to reduce and eventually end palm oil imports.

"We must object and immediately negotiate with the EU which is our biggest palm oil export destination.

"In the spirit of Hari Raya, let not this become a political polemic as thousands of smallholders and settlers rely on the palm oil industry.

"The new government should immediately take measures to resolve the problem with (low) palm oil prices and demand," he said.