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ELIGIBILITY FOR MALAYSIA SUSTAINABLE PALM OIL (MSPO) CERTIFICATION SCHEME INCENTIVES

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
21 January 2020

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MEDIA STATEMENT

MALAYSIA SUSTAINABLE AGRICOMMODITY WEEK
(NON FOOD AGRICOMMODITIES) AT DUBAI 2020 EXPO

1. The agricommodity sector is one of Malaysia's main economic drivers, contributing significantly to the national Gross Domestic Product (GDP), export earnings, jobs, and business opportunities, including elevating the standard of living of our smallholders. For many years, the agricommodity sector has been Malaysia's vital instrument in reducing poverty in Malaysia.

2. Understanding the global demand for sustainable agri-commodities, the Ministry of Plantation Industries and Commodities (MPIC), as the Platinum Premier Partner for Malaysia Pavillion in Dubai 2020 Expo, is proud to showcase Malaysia's journey, efforts, and initiatives towards sustainable agricommodity sector.

3. The theme of the exhibition and lineup of events focus on the efforts undertaken by Malaysia towards advancing the Agricommodity sector in a sustainable manner while promoting its goodness and versatile applications of the agricommodities. The advancement and development of the agricommodity industry support and embed the objectives of the United Nations Sustainable Development Goals in the plantation policies and management.

4. For Week 17, MPIC will host the Sustainable Agricommodity Week (Non-Food Agricommodities), running from 23rd January to 29th January 2022, as part of the 26 weekly thematic trade and business programmes organised by Malaysia Pavilion Expo 2020 Dubai. The event will be officiated by The Honourable Minister of Plantation Industries and Commodities, Malaysia, Datuk Hajah Zuraida Kamaruddin. Malaysia's participation in Expo 2020 Dubai is spearheaded by the Ministry of Science, Technology, and Innovation (MOSTI) with Malaysian Green Technology and Climate Change Corporation as implementing agency. The week will focus on non-food agricultural commodities of Malaysia such as rubber, timber, and kenaf.

5. Among the week's highlights is the Malaysian Rubber Products Virtual Showcase (MaRViS). This online platform facilitates online business engagements between international buyers and Malaysian rubber product manufacturers by Malaysia Rubber Council, TimbeReality, a dedicated VR platform that displays Malaysian-made timber and furniture products by Malaysia Timber Council, The Rubber Forum 2022 organised by Malaysia Rubber Board and Malaysia Wood Expo 2022 by the Malaysia Timber Board. The Honourable Minister will also witness the signing of four Memorandum of Understandings, three from the timber subsector and one from the Kenaf subsector.

6. MPIC and its agencies have also lined up exciting activities for visitors to the Malaysia Pavilion, such as interactive latex painting arts, agarwood product demonstrations, rubber clay modeling, kenaf demonstration, and special talks on Malaysia kenaf, timber, and Malaysian sustainable timber certification.

7. Despite the rough economic climate worldwide, Malaysia's agricommodity trade continues to perform reasonably well. From January to November 2021, the agricommodity sector has contributed total export revenue of RM189.5 billion to the Malaysian economy. This value has exceeded Malaysia's total export revenue for 2020 of RM152 billion. Therefore, MPIC will continue to raise more awareness, expand its network and global alliances, and share the importance of our sustainable agricommodities efforts through Expo 2020 Dubai.

MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
24 JANUARY 2022

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MEDIA STATEMENT

MALAYSIA-IRAN PALM OIL TRADE FAIR & SEMINAR 2022 TO CEMENT STRONGER RELATIONSHIP BETWEEN MALAYSIAN AND IRANIAN STAKEHOLDERS

1. The Malaysian Minister of Plantation Industries and Commodities, Datuk Hajah Zuraida Kamaruddin, addressed the members of the vegetable oil industry at the Parsian Azadi Hotel, Tehran. The Palm Oil Trade Fair and Seminar (POTS), themed “Complementing Iran’s Oils & Fats Demand with Malaysian Palm Oil”.

2. Datuk Hajah Zuraidah said that Iran edible oil market offers great potential for Malaysian palm oil and palm oil-based products export. Iran was the 8th top importer of Malaysian Palm Oil in 2021, with an increase of 26% from 321,106 tonnes in 2020 to 404,320 tonnes.

3. The total exports of Malaysian palm oil and its downstream derivatives achieved 24.3 million tonnes in 2021. The record high prices of palm oil in 2021 contributed to the increase in exports revenue to RM102 billion, an increase of 40% as compared to RM 73 billion registered in the year 2020. India retained its position as the number one export destination for Malaysian palm oil, with more than 3.5 million tonnes exported. Other prominent destinations for Malaysian palm oil were China, the Netherlands, Turkey, Pakistan, and the Philippines. Malaysian palm oil accounted for 24% of global palm oil production and 31% of world export in 2021.

4. Datuk Hajah Zuraida emphasised that challenges are still looming in the highly valued industry. Limitations among others in the form of non-tariff barriers including market access, discriminatory trade practices and negative perception have recently escalated against the Malaysian palm oil industry that offers a better competitive advantage over other edible oils. She also stressed that her Ministry will continue in its effort to disseminate accurate facts and information to counter the anti-palm oil campaigners and non-governmental organisations (NGO) to disprove the allegations of deforestation associated with the Malaysian palm oil industry.

5. Commenting on the opportunities for the private sector between Iran and Malaysia, Datuk Hajah Zuraida urged both parties to redefine the business approaches to form partnerships and strategic alliances to explore new avenues for expanding the edible oil and palm oil business in Iran. “I am very optimistic on the prospects of the global oils and fats industry. The global reopening of economic sectors following the Covid-19 pandemic has resulted in strong demand for Malaysian palm oil, including in Iran," she added.

6. Malaysia-Iran POTS 2022 is the 60th of its series since its introduction in 2006. This event is held in Iran for the 3rd time to address the oils and fats trade. Malaysia-Iran POTS 2022 is organised by Malaysian Palm Oil Council (MPOC) with the support from the Iranian Vegetable Oil Industry Association (IVOIA).

MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

8 FEBRUARY 2022

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MEDIA STATEMENT

MALAYSIAN MINISTER LAUNCHES COMMODITIES INTEGRATION
MARKETING COMPANY IN JEDDAH, SAUDI ARABIA TO
STRENGTHEN MARKET POSITION

27 January 2022

1. Hon. Datuk Hajah Zuraida Kamaruddin, Minister of Plantation Industries and Commodities of Malaysia officially launched the agricommodity regional office in Jeddah during a ministerial mission to Saudi Arabia followed by a Roundtable Discussion with the representatives of Palm Oil, Rubber and Timber Industries of Saudi Arabia to strengthen market position in this region for Malaysia’s agricommodity sectors.

2. The Commodities Integration Marketing Company (CIMC), the first of its kind in the Middle East, houses three government-linked organisations under one roof, namely Malaysian Palm Oil Council (MPOC), Malaysian Rubber Council (MRC) and Malaysian Timber Council (MTC).

3. The set-up of this agricommodity office is integral to facilitate the development and cooperation among Malaysian commodities and the local industries in the Middle East and North Africa (MENA) region, particularly Saudi Arabia. This will also lead to greater opportunities in enhancing trade for both countries.

4. Malaysian agricommodity products are well established in the world market and most are daily life essentials such as cooking oil, cosmetics, soap, gloves and house furniture and commonly used products in the industrial sector such as biofuel, structural bearings, automotive parts and building panels. Malaysia is not only recognised as the world’s largest exporter of rubber gloves and second largest exporter of crude palm oil, its agricommodity products are also known for its high quality and can be found in most parts of the world.

5. In 2020, Malaysian agricommodity export value to the Middle East and North Africa recorded a total of USD2.37 billion while rubber and its products recorded an export value of USD535 million. Similarly, timber and timber products recorded an export value of USD324.5 million whereas palm oil and palm oil products recorded USD1.51 billion.

6. Commodities Integration Marketing Company (CIMC) in Jeddah will act as the Malaysian Commodity Hub to foster international relations through various initiatives that are critical for the improvement and acceptance of Malaysian agricommodity products in the global market. The Ministry believes, the office in Jeddah is a testimony from both countries to deliver high quality Malaysian agricommodity products to Middle East and Africa in a responsible and sustainable manner.

7. In addition, Saudi Arabia has also committed to increase its imports of Malaysian palm oil from 318,000 tonnes, worth RM900 million last year to 500,000 tonnes, an increase of 182,000 tonnes with an estimated worth of RM1.5 billion this year.

HON. DATUK HAJAH ZURAIDA KAMARUDDIN
Minister of Plantation Industries and Commodities of Malaysia
Jeddah, Saudi Arabia
27th January 2022