MTC GREEN INCENTIVES
FOR PURCHASE OF AIR POLLUTION CONTROL EQUIPMENT ("APC")
GUIDELINES
A. INTRODUCTION
The Malaysian Timber Council (MTC) expanded 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) as well as strengthening the industry’s capability and capacity in reducing air pollution.
B. ELIGIBILITY CRITERIA
1. The company shall be incorporated in Malaysia and based in Peninsular Malaysia, installed with wood-based manufacturing facilities and in operation for at least three (3) years.
2. The company shall be a Malaysian-owned company (with at least 51% of shareholding).
3. 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); and
• Persatuan Pengusaha Kayu-kayan & Perabot Bumiputra Malaysia (PEKA)
[Association of Malaysian Bumiputera Timber & Furniture Entrepreneurs].
4. SMEs with common shareholders having different core businesses may apply; with a reimbursable amount up to RM100,000.
5. SMEs with common shareholders with similar core businesses may apply and share the eligible incentive.
6. Companies that have received other grant or subsidy for the procurement of the same equipment from other government or government-linked agencies are not eligible.
7. All applicants to be in full compliance with Occupational Safety and Health Act (OSHA) regulations. According to the OSHA Order 1997, the woodworking industry, involving activities like cutting, sawing, planing, and shaping, is required to appoint a Safety and Health Officer (SHO) for each workplace with more than 100 employees.
8. Under the Occupational Safety and Health Act 1994 (OSHA 1994):
• Section 30(1)(a) mandates a Safety and Health Committee for workplaces with 40 or more employees.
• Section 29A(1) requires an Occupational Safety and Health Coordinator (OSH Coordinator) for workplaces with 5 or more employees, unless an SHO is already mandated.
C. INCENTIVE
• 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.
• Note:
1. Cumulative eligibility for Green Initiatives (APC, SPS, EF and BESS) is limited to RM50,000 per company/group of companies (one-off).
2. Participants of the MTC Timber Sustainability Programme (TSP) beginning 2025 will be provided with an additional one-off allocation of
RM20,000 per company/group of companies starting in 2026.
D. AIR POLLUTION CONTROL EQUIPMENT PURCHASED
1. The APC equipment purchased must have air pollution control as its primary purpose;
2. The APC equipment is constructed/installed and used at the factory floor for the extraction of air pollutants, i.e. particulates, VOCs, etc;
3. 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).4. Only new equipment is eligible for this financial incentive;
5. APC equipment purchased for the upgrading of existing Air Pollution Control System (APCS) are eligible for the financial incentive; and
6. Both imported and locally fabricated APC equipment purchased are eligible for this financial incentive.
E. APPLICATION
1. 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.
2. Applying company shall complete their company profile in the online portal, with the following supporting documents (with certified true copy stamped and signed on front page only):
• Section 78 as per the Companies Act 2016 OR Form 24 as per the Companies Act 1965;
• Section 58 as per the Companies Act 2016 OR Form 49 as per the Companies Act 1965;
• Latest Form of Annual Return; and
• Latest Audited Accounts.
3. 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.
4. The applying company must submit Written Notification to the DG of DoE within 30 days before the commencement of construction work/installation of the new APC equipment.
5. Completed Application Form shall be submitted to MTC together with supporting documents after the purchase of APC equipment has been confirmed within 30 days before the installation of the equipment (with certified true copy stamped and signed on front page only):
1) Latest 3 months Bank Statements;
2) Purchase Order/Sales Contract;
3) Technical specifications and drawing/brochure with photos of the APC equipment;
4)Written Notification to DoE;
5) List of all machineries that are emitting air pollutants that will be controlled by the new APC equipment;
6) Manufacturing process flow chart (Highlighting the generating points of the air pollutants in the process);
7) Photos and description on existing dust extracting/APC equipment to be upgraded (where applicable); and
8) Documents evidencing compliance with the OSHA.
6. 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.
7. 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.
8. 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.
9. 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.
10. An Acknowledgement of Application Letter with a Reimbursement Checklist will be issued by MTC to successful Applicant that has submitted complete supporting documents.
F. REIMBURSEMENT
1. Submission for reimbursement (with full supporting documents) must reach MTC within six (6) months from the date of Written Declaration submitted to DoE. Submission of documents (with certified true copies stamped and signed on the front page only) required include:
1) Supplier’s Invoice and Delivery Order;
2) Bill of Lading, Customs Declaration Form (K1) and Packing List (if purchased offshore);
3) Transport or ocean freight charges;
4) Written Declaration and Dust Sampling Test Report submitted to DoE;
5) Proof of document to indicate that the entire cost of the APC equipment purchased has been paid; and
6) Proof of document to show that the APC equipment has been installed and used in the factory (i.e. letter of commissioning).
2. Late submission for reimbursement after the aforementioned six (6) months period will not be considered and shall be rejected by MTC.
3. Approval for reimbursement of any Incentives under this Programme is at the sole discretion of MTC subject to any application for reimbursement supported by credible and non-misleading requisite documentation as stipulated herein.
4. The financial incentive provided is on a first-come, first-served basis, until the budget allocation is completely utilised.
G. NON-COMPLIANCE (PENALTY)
In the event of non-compliance with any of the provisions contained herein, the company must refund in full the disbursement amounts to MTC within fourteen (14) calendar days from the receipt of a written notice from MTC. MTC reserves its rights to initiate legal action to recover the disbursed amount and/or any other actions deemed suitable. All costs incurred in pursuing such actions shall be solely borne by the company.
MTC also reserves the sole right to blacklist any company found to be non-compliant with any of the provisions contained herein.
H. AMENDMENT
MTC reserves the right to amend the Guidelines of this Programme at any time without any prior notice. Interested companies is highly encouraged to refer the IAP Portal for the latest version of the Guidelines from time to time.
For further enquiries and information, please contact:
1. Ms. Ong Lay Lee (Tel: 03-9286 9962; Email: ong@mtc.com.my)
2. Ms. Noor Ateeqah (Tel: 03-9286 9967; Email: noorateeqah@mtc.com.my)