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Dear Member of the Public / Malaysian Timber Certification Scheme (MTCS) Stakeholder,

The Malaysian Timber Certification Council (MTCC), as the scheme owner of MTCS, hereby announces the public consultation on the draft MTCS ED 1004:2026 (Enquiry Draft) Requirements for Certification Bodies Operating the Malaysian Timber Certification Scheme (MTCS) Malaysian Criteria and Indicators for Sustainable Forest Management (MC&I SFM) Certification.

The public consultation is conducted as part of the requirements of the Programme for the Endorsement of Forest Certification (PEFC) applicable to National Governing Bodies (NGBs) seeking to maintain the endorsement of their certification systems. For MTCS, the public consultation process is conducted in accordance with MTCS PR 1001:2026, Standard-setting Procedures (including for Forest Management Certification Standards).

MTCC welcomes comments and feedback from all interested stakeholders and members of the public to support the review and further development of the draft MTCS ED 1004:2026.

Background

MTCS ED 1004:2026 was developed by the Technical Committee for MTCS ST 1004 to align with the requirements of the PEFC ST 1004:2024 Requirements for Certification Bodies operating Certification against PEFC Endorsed Forest Management Standards. The Enquiry Draft consolidates the Accreditation of Certification Bodies – Forest Management Certification (ACB FMC) documents and current requirements for Certification Bodies (CBs) undertaking forest management certification under MTCS into a single standard.

Rather than serving as a separate supplement to ISO/IEC 17021 1:2015 (the primary requirements for management system certification bodies), the draft references and incorporates ISO/IEC provisions, providing users with a single authoritative standard.

Upon its publication and entry into force, MTCS ST 1004 will supersede the following existing ACB FMC documents.

Natural Forest, the documents include:

1. ACB-FMC 1-1, auditor competency;
2. ACB-FMC 1-2, audit duration;
3. ACB-FMC 1-3, peer review;
4. ACB-FMC 1-4, stakeholder consultation.

Forest Plantation, the documents include:

1. ACB-FMC 2-1, auditor competency;
2. ACB-FMC 2-2, audit duration;
3. ACB-FMC 2-3, peer review;
4. ACB-FMC 2-4, stakeholder consultation.

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The Malaysian Timber Certification Council (MTCC) is fully aware of the reports titled “Tainted Timber: Malaysian Certification Failures and UK Imports,” commissioned and published by Friends of the Earth England, Wales and Northern Ireland (FOE EWNI), and “The Trouble with Timber: Scrutinizing the Effectiveness of Sustainable Certification in Peninsular Malaysia,” published by Rimba Watch Sdn. Bhd. on FOE EWNI’s commission, funded by players of the People’s Postcode Lottery, United Kingdom as stated in the Tainted Timber report.

MTCC responded formally to FOE EWNI through their right-of-reply process on 13 March 2026, prior to the publication of the abovementioned reports, to address inaccuracies and provide needful information on the MTCS, justice to which was not done in the published reports. This response that was not previously made public is attached in full as in Appendix to this statement. FOE EWNI has not responded to MTCC’s reply to date.

Any report that disassociates itself from accuracy with this statement “The authors do not guarantee that all information is complete: readers are responsible for assessing the relevance and accuracy of the content of this publication”, as the Trouble with Timber report does, should not ignore the validated reply given by MTCC. FOE EWNI would be well-advised not to rush into publishing questionable and agitational reports, making baseless demands and recommendations.

As you are well aware, MTCC maintains established procedures for the submission and handling of complaints and disputes relating to the operation of the MTCS, as set out in MTCS GD 3003. No formal complaint was received which would have allowed verifiable evidences to be processed and investigated. Instead of using the proper mechanism, FOE EWNI published a report that shifts accountability away from the authors to the readers. This casts doubts on their intention to responsibly seek solutions. Therefore, MTCC questions the motivation behind this action, and calls for those reading the report to demand accuracy and evidence from FOE EWNI. 

MTCC Asks for Accurate Information: MTCC encourages all parties, including non-governmental organisations, to make sure the information they share is accurate and reflects the current situation. Reporting responsibly helps everyone to efficiently address the issues based on the established institutional arrangement of the MTCS.

All other parties seeking clarification or accurate, verified details regarding MTCS are encouraged to contact MTCC directly or access our website at www.mtcc.com.my.

End

Download the full statement below.

Publish Date: 19 May 2026

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Eligibility

The incentive is eligible for Malaysian companies that:

1. Obtain MTCS/PEFC Chain of Custody (COC) certification / Forest Management (FM) certification
2. Maintain or renew their MTCS/PEFC COC / FM certification

Companies must incur expenses related to audit certification activities conducted by a certification body accredited by the Department of Standards Malaysia (DSM). Certification bodies accredited by DSM for the purpose of issuing certifications under DSM, include the following programmes:

1. Product Certification Programme (PC)
2. Forest Management Certification Programme (FMC)

Claiming the Tax Deduction

1. Obtaining MTCS/PEFC Chain of Custody (COC) certification / Forest Management (FM) certification

Double Tax Deduction – Paragraph 34(6)(ma), Income Tax Act 1967

Expenses incurred by a company for the purpose of obtaining MTCS/PEFC certification, are eligible for a double tax deduction provided the certification is issued by an accredited Certification Body under Paragraph 34(6)(ma).

Expenses that may qualify for double tax deduction include: 

• Application fee
• Annual fee (for the first year only)
• Assessment fee
• Other fees imposed by the Certification Body for obtaining the certification

2. Maintaining or renewing their MTCS/PEFC COC / FM certification

Single Tax Deduction – Section 33(1), Income Tax Act 1967

After the MTCS/PEFC certification has been obtained, any fees charged by the Certification Body in subsequent years are eligible only for a single tax deduction under Section 33(1).

Expenses that may qualify for Single Tax Deduction include: 

• Annual surveillance fee
• Annual renewal fee
• Reassessment fee
• Other fees imposed by the Certification Body for maintaining the certification

Reference: GARIS PANDUAN; POTONGAN PERBELANJAAN DI BAWAH PERENGGAN 34(6)(m) DAN 34(6)(ma) AKTA CUKAI PENDAPATAN 1967 BAGI MAKSUD PENGIRAAN CUKAI PENDAPATAN

Publish Date: 12 May 2026

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The Malaysian Timber Certification Council (MTCC) wishes to announce the postponement of the standard review and re-endorsement process for the Malaysian Timber Certification Scheme (MTCS). The current MTCS endorsement milestone includes a revision start date of 5 March 2026 and a submission deadline of 5 March 2027.

On 12 February 2026, the Programme for the Endorsement of Forest Certification (PEFC) notified National Governing Bodies (NGBs) including MTCC regarding an upcoming international system revision scheduled for 2026. This revision specifically focuses on the PEFC Sustainable Forest Management (SFM) benchmark standard which is the PEFC ST 1003.

To ensure global consistency and system credibility, PEFC has advised National Governing Bodies to align their national reviews with the upcoming international revision. Postponing the current timeline prevents fragmented compliance and avoids a direct overlap with the new international standards.

In view of this, and in line with PEFC provisions, MTCC formally requested on 31 March 2026 to postpone the MTCS SFM standard review and re-endorsement process. The request was approved by PEFC on 14 April 2026 and was later endorsed by the MTCC BOT on 20April 2026. Consequently, the MTCS SFM standard revision and system endorsement process will be deferred until the revised PEFC SFM benchmark standards are officially published.

MTCC appreciates the continued support of all stakeholders and remains committed to ensuring that MTCS stays aligned with international requirements and best practices.

For further information on this matter, please contact MTCC at fm@mtcc.com.my or 03-2161 2298.

Publish Date: 5 May 2026

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The Malaysian Timber Certification Council (MTCC) is pleased to announce the publication of MTCS GD 3003:2026 – Complaints Handling and Dispute Resolution Mechanism – Guide for Stakeholders, effective 1 May 2026. The Guideline and the improvements on the mechanism was approved by the MTCC Board of Trustees at its 110^th Meeting on 20 April 2026 and supersedes MTCS GD 3003:2023 – Complaint Handling and Dispute Resolution Procedure in its entirety. It is designed to strengthen transparency, accountability, and stakeholder confidence in the Malaysian Timber Certification Scheme (MTCS). With this publication, all complaints submitted on or after 1 May 2026 will be managed under the revised Guideline.

The Guideline sets out the improved Complaints Handling and Dispute Resolution Mechanism on how MTCC receives, manages, escalates, and resolves complaints and disputes arising from the implementation and operation of the MTCS. The Guideline also informs stakeholders of their rights and the process available to them. It is is aligned with PEFC GD 1004:2009 – Administration of PEFC Scheme, as MTCC is endorsed by PEFC.

Key Enhancements

• The scope of the Guideline is expanded to include stakeholder management, risk management, and corrective and preventive actions;
• Better clarity for stakeholders to participate in the complaints, timelines and clearer accountability for parties involved.
• A tiered Alternative Dispute Resolution (ADR) pathway encourages early resolution through negotiation, neutral evaluation, and facilitation before escalation to mediation;
• Clear roles are defined for the Complaints and Nonconformity Secretariat, Dispute Resolution Secretariat, Dispute Resolution Committee, and Board of Trustees, strengthening accountability and governance transparency.
• Improved access including within the MTCC website with a dedicated email channel, complaints@mtcc.com.my, has been established for all formal submissions.

Stakeholders are encouraged to access MTCS GD 3003:2026 – Complaints Handling and Dispute Resolution Mechanism – Guide for Stakeholders.

• Access the MTCS GD 3003:2026

For enquiries about the Guideline or submitting complaints, visit the Complaints Page: https://mtcc.com.my/complaints/.

Publish Date: 1 May 2026

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