KUALA LUMPUR, Nov 29 — The Malaysian Estate Owners’ Association (MEOA) is appealing for the implementation of the Malaysian Palm Oil Board (MPOB) Cess Order 2020, scheduled to take effect on January 1, 2021, to be postponed to a later date.
In a statement today, the association opined that the proposal to levy the additional cess should be open for further dialogue with the oil palm growers.
“The postponement proposed by MEOA would enable the relevant stakeholders, especially the affected cess contributors of the oil palm plantation fraternity, to be given the additional opportunity to participate in inclusive engagement with the Ministry of Plantation Industries and Commodities (MPIC) and its agency, the MPOB, on their intent and proposals for using the funds collected under this additional cess,” it said.
The new MPOB Cess Order 2020 stipulates the payment of an additional RM5.00 cess per tonne of crude palm oil (CPO) and crude palm kernel oil (CPKO) produced, over and above the current total cesses of RM14.00 per tonne of CPO produced.
It is widely understood from previous engagements with MPOB and from MPOB’s circulars for public comments, that the funds are intended to be used for mechanisation and automation (M&A) in the industry.