MTC Industry Assistance Programme

IAP

IAP Guidelines

Guidelines for MTC Import Assistance Programme (IAP) 2025

GUIDELINES FOR IAP 2025

The Import Assistance Programme (IAP) established by the Malaysian Timber Council (MTC) is an off-shore sourcing programme for timber raw materials/planting materials. This programme aims to encourage the development of timber industry in Peninsular Malaysia that is involved in manufacturing downstream value-added products for the domestic and export markets. The programme facilitates local timber manufacturers to import raw materials or planting materials by defraying part of the freight and handling charges. MTC IAP consists of four (4) categories:

A.    DIRECT SOURCING PROGRAMME (DSP)

To defray freight and handling charges incurred for the importation of timber raw materials. 

B.    INDUSTRIAL TESTING PROGRAMME (ITP) 

To encourage industry to conduct feasibility studies on the suitability of new timber species for their production.

C.    MISSION PARTICIPATION INCENTIVE (MPI)

To facilitate trial shipment from new timber raw materials suppliers visited during MTC Resource and Business Mission. 

D.    PLANTING MATERIALS (Seedlings/Plantlets) 

To support the timber industry’s initiative in importing planting materials for the establishment of timber plantations for future source of sustainable timber supply.

 

1.     COMPANY ELIGIBILITY

a)    The company shall be incorporated in Malaysia and based in Peninsular Malaysia with own manufacturing facilities.

b)    The company shall be a Malaysian-owned company (with at least 51% of shareholding).

c)     Eligible for both small and medium enterprises (SMEs) and non-SMEs with an annual revenue below RM100 million and are not public listed.

d)    Companies with 50% or more of majority common shareholders may participate in the programme.

e)    Companies within the same group or with common shareholders but different core businesses are eligible to apply for up to a maximum of two (2) companies and/or reimbursement up to RM220,000, subject to the eligible reimbursement rates. This term does not apply to the local traders and non-SMEs.

f)      Local manufacturers that purchase imported raw materials from domestic traders may apply.

g)    Categories of eligible local traders are as follows:

  1. Category I: Trader who imports and sell the timber materials “as is” to manufacturers for value-added downstream products.
  2. Category II: Trader outsources the value-added downstream process while sales and marketing is handled by its company.

h)    The company shall be a member of any one (1) of the following six (6) timber associations:

  • Malaysian Wood Industries Association (MWIA);
  • The Timber Exporters' Association of Malaysia (TEAM);
  • The Malaysian Panel-Products Manufacturers' Association (MPMA);
  • Malaysian Wood Moulding & Joinery Council (MWMJC);
  • Malaysian Furniture Council (MFC);
  • Persatuan Pengusaha Kayu-kayan & Perabot Bumiputra Malaysia (PEKA) [Association of Malaysian Bumiputra Timber & Furniture Entrepreneurs]

 

2.     TIMBER RAW MATERIALS

a)     Timber raw materials must be in the form of round logs, sawntimber, veneers, mouldings, LVL bed slats, tubular core particleboard, semi-processed products, panels which is not produced in Malaysia and timber components deemed suitable by MTC.

b)     The timber raw materials must be from legal sources.

c)      Import of timber raw materials from Sabah and Sarawak is permitted under the programme.  Timber materials that are eligible to be imported from Sabah and Sarawak are logs, sawntimber, veneers, panels, mouldings, semi-processed products, and timber components deemed suitable by MTC.

d)     Final port of destination should be a port located in Peninsular Malaysia.

e)     Alternative raw materials from local sources (i.e. oil palm trunk, coconut trunk, kenaf, bamboo etc.) are also eligible under this programme. Alternative raw materials sourced from its own plantation and related subsidiaries, or group of companies are not eligible under this programme.

 

3.     GRADUATION POLICY

a)    The Graduation Policy takes effect on 1 January 2025 and applies to the Direct Sourcing Programme (DSP) under IAP, with the exception of raw materials imported from Sabah and Sarawak (until further notice).

b)    The duration of financial assistance under the DSP is limited to a maximum of seven (7) years. This period is calculated from the year a company first participated in the DSP, with 2018 designated as the base year. A company is considered to have participated if it received reimbursement(s) in that particular year.

c)     For example, companies that began their participation in the DSP in 2018 are eligible for financial assistance for a total of seven (7) consecutive years, ending in 2024. As such these companies will no longer qualify for DSP financial support starting 2025.

d)    For companies that participated in non- consecutive years during the seven-year period, eligibility for financial assistance will be adjusted accordingly. For example, if a company participated in 2018, 2019, and 2020 but did not participate from 2021 to 2024, it would still be eligible for assistance for the remaining years within its seven-year limit.

e)    Graduated companies and non-SMEs are permitted to participate in the DSP 2025, but only for the importation of timber raw materials from Sabah & Sarawak.This exception aims to strengthen collaboration on raw material initiatives between Peninsular Malaysia and Sabah & Sarawak, and to further facilitate the importation of raw materials from Sabah & Sarawak.

 

4.     INCENTIVES  

A.    Direct Sourcing Programme

                                                                                             

No.

Category

Reimbursement Rate
 

SMEs

a)    A maximum of 2,000 m3 per company:

  1. 1st tier of 1,000 m3 at RM100/m3 for imports from Sabah & Sarawak and RM70/m3 for imports from other countries (except Thailand).
  2. 2nd tier of 500 m3 at RM40/m3 for imports from all countries/regions.
  3. 3rd tier of 500 m3 at RM40/m3 only for imports of the following which is only eligible for companies that have fully claimed the first 1,500 m3.:
  • high value logs and sawntimber (excluding Rubberwood and Paulownia) for manufacturing of value-added timber products; or
  • logs and sawntimber for manufacturing of value-added timber products (excluding pallets).

b)    Timber raw materials imported as components/minimal value-added processes (i.e. LVL bed slats, furniture components: RM30/m3

c)     Timber materials imported from Thailand:  RM30/m3

d)    Purchase assistance for alternative raw materials from domestic sources: RM30/m3 up to a maximum of 3,000 m3.

 
 

Non-SMEs

A maximum of 1,000 m3 per company at RM100/m3 for imports from Sabah and Sarawak only.

 
 

Local Traders (SMEs)

a)    A maximum of 1,500 m3 per company:

Category I:

  1. 1st tier of 500 m3 at RM30/m3 for imports from Sabah & Sarawak and from other countries (except Thailand).
  2. 2nd tier of 1,000 m3 at RM40/m3 for imports from Sabah & Sarawak and from other countries (except Thailand).

Category II:

  1. Flat rate of RM40/m3

b)    Timber raw materials imported as components/minimal value-added processes (i.e. LVL bed slats, furniture components): RM30/m3

c)     Timber materials imported from Thailand:  RM30/m3

 

 Note:

1)    Each company or participant is only eligible for only ONE maximum volume/quantity (i.e. 1,000 m3, 2,000 m3 or 3,000 m3)

2)    All reimbursements shall be based on the rate above or the actual amount incurred, whichever is lower.

 

B.    Industrial Testing Programme (ITP)

a)    Eligibility

  1. Full reimbursement for ocean freight charges up to a maximum of two (2) forty-footer containers per company from the port of origin inbound to any port in Peninsular Malaysia.
  2. Timber raw materials must be in the form of round logs, sawntimber, veneers, mouldings, semi-processed products and timber components deemed suitable by MTC.
  3. Import of timber raw materials from Sabah and Sarawak is permitted under the programme. 

 

b)    Reimbursement

  1. Refer to Item 5 for Registration.
  2. Upon completion of registration, company submit application for reimbursement by completing the  Application Form to MTC together with the certified true copy of the Purchase Order/ Contract before shipment date.
  3. Upon receipt of the Application Form and Purchase Order/Contract, MTC to verify that the applicant has never imported the timber species before and is eligible to apply for ITP.
  4. MTC will send a conditional approval letter to the company. The import period shall be within 6 months from the date of the conditional approval letter.
  5. The applicant can appeal to MTC for extension before the deadline should the shipment is delayed.

 

C.    Mission Participation Incentive (MPI)

a)    Eligibility

  1. Full reimbursement for ocean freight charges up to a maximum of two (2) forty-footer containers per company from the port of origin inbound to any port in Peninsular Malaysia.
  2. The company must participate in MTC Resource and Business Mission.
  3. Timber raw materials must be in the form of round logs, sawntimber, veneers, mouldings, semi-processed products and timber components deemed suitable by MTC.
  4. Reimbursement is for the purchase of timber raw materials from suppliers visited during mission.

 

b)    Reimbursement

  1. Refer to Item 5 for Registration.
  2. Upon completion of registration, company shall submit application for reimbursement by completingthe Application Form together with the certified true copy of the Purchase Order/Contract before shipment date and within 3 months upon completion of the mission.
  3. MTC will send a conditional approval letter to the company. The import period shall not exceed 6 months from the date of the conditional approval letter.
  4. The applicant can appeal to MTC for extension before the deadline should the shipment is delayed.

 

D.    Planting Materials (i.e., Seedlings/Plantlets)

a)    Eligibility

  1. Reimbursement for air freight and handling charges incurred for the importation of planting materials (i.e. seedlings/plantlets). 
  2. Eligibility per company/group of companies:

 

Description

Eligibility

Maximum incentive amount

RM70,000

Maximum reimbursement per shipment (i.e. approximately 50,000 – 100,000 seedlings/plantlets per shipment)

RM10,000

 

 

b)    Planting Materials

  1. The planting materials (i.e., seedlings/plantlets) must be from legal sources.
  2. Appropriate choice of timber species that are deemed suitable to local climatic and soil conditions.
  3. The company must apply for an Import Permit from the Department of Agriculture (DoA) for the importation of the planting materials (i.e., seedlings/plantlets).

c)     Reimbursement

i. Refer to Item 5 for Registration.

ii. Upon completion of registration, company shall submit application for reimbursement by completing the Application Form together with certified true copy of the following documents:

  • Latest 3 years audited accounts
  • Latest 3 months bank statements
  • Land title (ownership) or leasing agreement
  • Area map (topography/scaled plan)
  • Approved Forest Management Plan and Environmental Impact Assessment (EIA) Report (where applicable)
  • Approval to plant the seedlings/plantlets from relevant Local Authorities

 iii. The company must have the Letter of Approval to plant the seedlings/plantlets from local authorities and an existing land area which is:

  • Privately owned or have leasehold agreement of at least 20 years or for at least one (1) planting cycle.
  • A minimum size of:
    • 4 – 40 hectares (small scale)
    • 41 – 2,499 hectares (medium scale)

iv. The company has the approved Forest Management Plan (FMP) from the state Forest Department and Environmental Impact Assessment (EIA) Report should they lease the land from the state government.

v. For plantations that are established on private land, the company must ensure that the land is approved for forest plantation purposes.
Import period for approved applications for Importation of Planting Materials is from 1 January to 31 December of the year OR from the date of MTC’s approval to 31 December of the year.

vi. All applications for the reimbursement must be submitted within thirty (30) calendar days from the Customs import date, with the following documents:

  • Airway Bill
  • Customs Official Receipt (if any)
  • Customs Declaration Form (K1)
  • Commercial/Supplier’s Invoice(s)
  • Packing List
  • Air Freight Invoice(s)
  • Handling Charge Invoice(s)
  • Import Permit from DoA

viii. Late submission for reimbursement after the thirty (30) calendar days period will not be considered.

  1. An applicant must allow an independent due diligence audit to be carried out by MTC one (1) month after the transplant of the seedlings/plantlets.
  2. Periodical audits by MTC staff to the plantation may be conducted from time to time.
  3. Non-compliance: 
  • Applying companies are to declare and confirm that the seedlings/plantlets imported are used for the company’s own planting and not for re-export and/ or trading purposes.
  • In the event of non-compliance, the company must undertake to refund the full disbursed amount to MTC.

 

5.     REGISTRATION/APPLICATION

a)     Register for an account at MTC IAP Portal: iap.mtc.com.my. Once the account registration is approved, the applicant will receive an email notification and instructions to log into the Portal.

b)     Applying company shall complete their company profile in the online application portal.

c)      Applying company with existing account in the portal shall log in and update their company profile. The company profile can be updated at any time and should be kept up to date for MTC’s evaluation.

d)     Certified true copy of documents1 required include:

  1. Form 24 as per the Companies Act 1965 OR Section 78 as per the Companies Act 2016.
  2. Form 49 as per the Companies Act 1965 OR Section 58 as per the Companies Act 2016.
  3. Latest Section 68 (Annual Return) as per Companies Act 2016.
  4. Latest Audited Accounts. 

Note: 1 To certify on the first page only. Hardcopies are not required.

e)     The online application for the Direct Sourcing Programme (DSP) is open to industry members starting 1 December for the following year programme.

f)       For the application for Mission Participation Incentive (MPI), Industrial Testing Programme (ITP) and Planting Materials, industry members can download the Application Form from the IAP Portal. The completed form is to be submitted to MTC to the email stated below.

 

6.     NON-COMPLIANCE (Penalty)

a)     Manufacturers registered with IAP should declare and confirm that the timber raw materials are imported from legal sources and the products are used for the company’s own production and not for re-export and/or traded.

b)     In the event of non-compliance, the company must undertake to refund in full the disbursement amount back to MTC.

 

7.     REIMBURSEMENT 

a)    All applications for the IAP reimbursement must be submitted online via MTC IAP Portal (iap.mtc.com.my) within 30 days from the import date as per custom receipt/declaration, with the following documents to be submitted online: 

i)          Purchase Order/Contract

ii)         Bill of Lading

iii)         Legality Certificate(s) (if any)  

iv)        Customs Official Receipt (if any)

v)         Customs Declaration Form (K1)

vi)        Special Calculation of Import (if any)

vii)       Commercial/Supplier’s Invoice(s)

viii)     Packing List 

ix)       Forwarding Invoice(s)

x)        Ocean Freight Invoice(s)

xi)       Terminal Operators’ Invoice(s) 

xii)      Land Transportation Invoice(s)

xiii)     Self-declaration Letter (if any)

 

b)    The applying company is required to submit company declarations via the IAP portal to acknowledge the responsibility for the accuracy and authenticity of all information provided in the submitted documents.  Certified true copies are not required for the uploaded supporting documents, except for those required for the Company Profile.

c)     Reimbursement is based on a first-come, first-served basis until the fund is fully utilised.

d)    Timber raw material imported is subject to periodical audit by MTC staff either at the port or at the factory premises from time to time. 

 

 

For further enquiries and information, please contact:

1. Ms. Ong Lay Lee, 03-9286 9962, email: ong@mtc.com.my

2. Ms. Rachel Joanes Ling, 03-9286 9964, email: ling@mtc.com.my

3. Ms. Mazwani Adnan, 03-9286 9979, email: mazwani@mtc.com.my

4. Ms Juli Pilus, 03-9286 9969, email: juli@mtc.com.my

 

Industry Development & Transformation Division (IDTD)

 

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