Incentives claimable for applicants that signed with MSPO before Jan 1

They also includes industry players that are already in the process of MSPO certification audit


THE Malaysian Sustainable Palm Oil (MSPO) certification scheme incentives can only be claimed by parties that have signed agreements with the certification body before Jan 1, 2020.

Malaysian Palm Oil Certification Council (MPOCC) CEO Chew Jit Seng said in a statement yesterday that they would also include industry players that are already in the process of MSPO certification audit.

“As such, growers having more than 40.46ha or 100 acres of oil palm and palm oil processing facilities that have initiated the MSPO/Supply Chain Certification Standard certification process will need to submit a copy of the signed agreement with the appointed certification body to MPOCC,” he said.

Chew said estates with areas between 40.46ha and 1,000ha will be eligible for a full auditing fee claim including audit man-days, report writing, stakeholder consultation and peer review.

These estates are also eligible for 50% preparation costs claim which is limited to the costs for MSPO policies and system documents, social impact assessment, environmental aspect and impact report, high biodiversity value report, training for greenhouse gas calculation and training for internal audit and management review.

He said the amounts of reimbursement for preparation costs will be up to a maximum of RM10,000. Chew added that estates with areas more than 1,000ha and palm oil processing facilities such as mill, kernel crusher, refinery, oleochemical plant and biodiesel plant are entitled for 30% incentives of the audit fees.

MSPO incentives for independent smallholders and organised smallholders are under the Malaysian Palm Oil Board (MPOB).

MPOB will cover the cost of training, cost of auditing, documentation, personal protective equipment and chemical storage for independent smallholders while organised smallholders are eligible for RM55 per hectare to cover the cost of auditing, training, social and environmental impact assessments.

The MSPO certification was made mandatory by the government beginning Jan 1 after it was extended by six months last year.

Last week, Primary Industries Minister Teresa Kok was reported as saying that the latest data received by the ministry revealed that only 11% of oil palm smallholders nationwide had obtained the MSPO certificate and the figure is small and worrying.