1. Malaysian Palm Oil Certification Council (MPOCC) would like to refer to the Government announcement on 5 October 2019 that ONLY those who have successfully obtained the Malaysia Sustainable Palm Oil (MSPO) certification or initiated the certification process before 1 January 2020 are eligible to apply for MSPO incentive.

2. Thus, with effect from 1st January 2020, MSPO incentives are only claimable by those entities who have signed agreements with Certification Bodies (CBs) before 1st January 2020 or are already in the process of MSPO certification audit.

3. As such, growers having more than 40.46 ha or 100 acres of oil palm and palm oil processing facilities that have initiated MSPO/SCCS certification process will need to submit a copy of the signed agreement with the appointed Certification Body to MPOCC. The eligible CBs are listed in MPOCC website (https://www.mpocc.org.my/certification-bodies)

4. Estates with areas between 40.46 to 1,000 ha will be eligible for 100% of auditing fees claim, which includes audit man-days, report writing, stakeholders consultation and peer review. In addition, they are also eligible for 50% preparation costs claims, limited to the costs for MSPO policies and system documents, social impact assessment (SIA), environment aspect and impact (EAI) report, high biodiversity value (HBV) report, training for Greenhouse Gas calculation and training for internal audit and management review. The amounts of reimbursement for preparation costs will be up to maximum RM10,000.

5. Estates with areas more than 1,000 ha and palm oil processing facilities such as mill, kernel crusher, refinery, oleochemical plant and biodiesel plant are eligible for 30% incentives of the audit fees.

6. MSPO incentives for independent smallholders and organised smallholders are under the Malaysian Palm Oil Board (MPOB). For independent smallholders, MPOB will cover the cost of training, cost of auditing, documentation, personal protective equipment and chemical storage rack. Meanwhile, organised smallholders are eligible for RM55 per hectare to cover the cost of auditing, training, social and environmental impact assessments.

Statement by:

Mr Chew Jit Seng
Chief Executive Officer, MPOCC
January 2020