MTC FINANCIAL INCENTIVE FOR PURCHASE OF AIR POLLUTION CONTROL EQUIPMENT (FIAPC)

GUIDELINES

MTC is expanding its assistance programme to the timber industry by introducing MTC’s financial incentive for the purchase of Air Pollution Control (APC) equipment to assist the timber industry to comply with the Environmental Quality (Clean Air) Regulations 2014 (CAR 2014).

A)   Eligibility Criteria

• Shall be a member of any one (1) of the six (6) timber associations:

                          i.   Malaysian Wood Industries Association (MWIA);

                         ii.   The Timber Exporters' Association of Malaysia (TEAM);

                        iii.   The Malaysian Panel-Products Manufacturers' Association (MPMA);

                        iv.   Malaysian Wood Moulding & Joinery Council (MWMJC);

                         v.   Malaysian Furniture Council (MFC); and

                        vi.   Persatuan Pengusaha Kayu-kayan & Perabot Bumiputra Malaysia (PEKA)

                              [Association of Malaysian Bumiputera Timber & Furniture Entrepreneurs].

• The company must be incorporated in Malaysia and based in Peninsular Malaysia, installed with wood-based manufacturing facilities, in operation for at least three (3) years;
• Must be involved in sawmilling or production of value-added timber products;
• Must be a majority Malaysian-owned company (i.e. with at least 51% of Malaysian shareholding);
• SMEs with common shareholders having different core businesses may apply; with a reimbursable amount up to RM100,000;
• SMEs with common shareholders with similar core businesses may apply and share the eligible incentive; and
• Companies that have received other grant or subsidy for the purchase of the said item from other government or government-linked agencies are not eligible for this incentive.

B)   Incentive

Partial reimbursement of the cost of purchasing APC equipment for the Applying Company’s Air Pollution Control System (APCS).

C) Reimbursement Rate

• Small and Medium Enterprise (SMEs) and Non-SMEs: 20% of the price of APC equipment, limited to a maximum of RM50,000 per company/group of companies.

D)   Air Pollution Control Equipment Purchased

• The APC equipment purchased must have air pollution control as its primary purpose;
• The APC equipment is constructed/installed and used at the factory floor for the extraction of air pollutants, i.e. particulates, VOCs, etc;
• The APC equipment must be designed and constructed in strict compliance with the minimum requirements and specifications as stipulated in the “Guidance Document for Fuel Burning Equipment and Air Pollution Control Systems” specified by the Director General (DG) of Department of Environment (DoE) (visit: https://www.doe.gov.my/portalv1/wp-content/uploads/2014/07/Guidance-Document-For-Fuel-Burning-Equipments-And-Air-Pollution-Control-Systems-29122015.pdf );
• Only new equipment is eligible for this financial incentive;
• APC equipment purchased for the upgrading of existing Air Pollution Control System (APCS) are eligible for the financial incentive; and
• Both imported and locally fabricated APC equipment purchased are eligible for this financial incentive.

E)      Application

• Completed Application Form shall be submitted to MTC together with supporting documents after the purchase of APC equipment has been confirmed but not less than 30 calendar days before the installation of the equipment. 
• The applying company must submit Written Notification to the DG of DoE not less than 30 days before the commencement of construction work/installation of the new APC equipment.
• Certified true copies of documents¹ to be submitted include:
• Form 24 as per the Companies Act 1965 OR Section 78 as per the Companies Act 2016
• Form 49 as per the Companies Act 1965 OR Section 58 as per the Companies Act 2016
• Latest Form of Annual Return
• Purchase Order/Sales Contract
• Technical specifications and drawing/brochure with photos of the APC equipment
• Written Notification to DoE
• List of all machineries that are emitting air pollutants that will be controlled by the new APC equipment
• Manufacturing process flow chart (Highlighting the generating points of the air pollutants in the process)
• Photos and description on existing dust extracting/APC equipment to be upgraded (where applicable)
• Latest 3 years Audited Accounts
• Latest 3 months Bank Statements                                                                                                                                      Note: ¹To certify on the first page only.

• The applying company must allow a due diligence audit (DDA) (remote or physical) to be carried out by MTC during the installation of the APC equipment.
• The applying company must notify MTC the schedule for installation of the new APC equipment not less than 2 weeks before installation of the APC equipment.
• A Written Declaration (AS/PUB-DECLARE) on the design and construction of the APC equipment and “As Built Drawing” must be submitted to the DG of DoE within 30 days after the testing and commissioning of the APC equipment.
• The Applying Company is also required to engage a third party accredited laboratory to conduct the first stack sampling within 3 to 6 months after the commissioning of the APC equipment and to submit a “Dust Sampling Test Report” to DoE to ascertain whether the performance of the APC equipment installed is able to comply with the limit values as stipulated in the CAR 2014.

F)      Reimbursement

• Submission for reimbursement (with full supporting documents) must reach MTC within six (6) months from the date of Written Declaration submitted to DoE. Certified true copies of documents¹ required include:
• Supplier’s Invoice and Delivery Order for the APC equipment
• Bill of Lading, Customs Declaration Form (K1) and Packing List (if purchased offshore)
• Transport or ocean freight charges.
• Written Declaration and Dust Sampling Test Report submitted to DoE.
• Proof of document to indicate that the entire cost of the APC equipment purchased has been paid.
• Proof of document to show that the APC equipment has been installed and used in the factory (i.e. letter of commissioning).                                                                                                                                                            Note: ¹To certify on the first page only.

• Late submission for reimbursement after the aforementioned six (6) months period will not be considered and shall be rejected by MTC.
• Approval for reimbursement is at the sole discretion of MTC.
• The financial incentive provided is on a first-come, first-served basis until the budgeted allocation is completely utilised in the particular year.

G)   Non-compliance (Penalty)

• In the event of non-compliance to the guidelines, the company must undertake to refund in full the disbursement's amount to MTC.

For further enquiries and information, please contact:

1.     Ms Wong Mei Kuan, ext. 605, email: mkwong@mtc.com.my

2.     Ms Siti Azura, ext. 305, email: azura@mtc.com.my