RM100 million for smallholder replanting scheme: Chan
Published on: Tue, Jun 10, 2025
By: Marutin Ansiung Text Size: Chan said the initiative is crucial to boosting productivity and income, particularly among smallholders in Sabah. NABAWAN: The Government has allocated RM100 million to support oil palm smallholders nationwide through the latest Replanting Financing Incentive Scheme for Oil Palm Smallholders (TSPKS 2.0). Under this scheme, the Malaysian Palm Oil Board (MPOB), in collaboration with Agrobank, aims to see over 1,500 smallholders benefit from replanting activities across nearly 6,000 hectares.
Advertisement Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the initiative is crucial to boosting productivity and income, particularly among smallholders in Sabah. He added that the Government, through MPOB, also provides various forms of support to help smallholders obtain the Malaysian Sustainable Palm Oil (MSPO) certification. These include certification fees, training on Good Agricultural Practices (GAP), personal protective equipment (PPE) and chemical storage racks. 'To date, 571 applications have been approved in Sabah, covering more than 2,500 hectares of oil palm plantations,' he said. He was speaking to the media after officiating at the MSPO Strengthening Programme and TSPKS 2.0 at the District Council open hall here on Monday. Also present were Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup, who is also Pensiangan MP; Sabah Land Development Board (SLDB) Chairman Datuk Abdul Ghani Mohamed Yassin, who is also Nabawan Assemblyman; and Nabawan District Officer Marshal Anthony. Chan fears, that Malaysia's palm oil industry is currently facing major challenges, including accusations by external parties linking palm oil cultivation to environmental destruction, deforestation and loss of natural habitats. He said such issues have, to some extent, affected Malaysia's palm oil image and marketability on the international stage. 'To counter these negative perceptions, the Government introduced and implemented the MSPO certification as a strategic measure to ensure Malaysia's palm oil production is sustainable and complies with global standards,' he said. According to him, the MSPO scheme not only enhances global market acceptance but also benefits smallholders through improved GAP, environmental conservation and increased product quality –ultimately leading to higher incomes. As of April 30 2025, a total of 30,768 smallholders in Sabah have obtained MSPO certification, covering 191,204.27 hectares – representing 97.62 per cent of the certification rate in the State. For the Sustainable Palm Oil Cluster (SPOC) S11 (Pensiangan) cluster, 1,211 smallholders have been certified, covering 7,679.41 hectares. The MSPO scheme also includes support and guidance from MPOB's Tunas officers, the provision of plantation signage and a RM200 incentive to assist with land title amendment applications. This initiative aims to ensure compliance with MSPO standards and enhance the international market acceptance of smallholder-produced palm oil. At the same time, Chan highlighted the important role of cooperatives formed under the SPOC in uniting smallholders, enabling joint economic and social activities that benefit members. To date, 162 SPOCs have been established nationwide, demonstrating the Government's commitment to strengthening the palm oil sector at the grassroots level. Additionally, the Government through MPOB has introduced the Crop Integration with Oil Palm Incentive Scheme (ITa), aimed at increasing smallholders' income by integrating cash crops such as bananas, maize, watermelon, papaya and pineapple. The scheme has been further enhanced to include lemongrass and mushrooms. 'In parallel, the Government via MPOB has also implemented the Livestock Integration with Oil Palm Incentive Scheme (ITe), which aims to diversify smallholders' income sources,' he said. As of April 30 this year, a total of 430 livestock integration projects and 83 crop integration projects have been approved in Sabah, including a pineapple planting project in Pensiangan. To further support smallholders' socioeconomic sustainability, Chan said MPOB is promoting the establishment of Sustainable Oil Palm Growers' Cooperatives (KPSM) to unify and empower independent smallholders, while encouraging cooperation to boost incomes. To date, 70 KPSMs have been formed with a total membership of 8,811 nationwide. Of these, 28 are based in Sabah, with nearly 2,853 members. He said KPSMs have successfully undertaken income-generating activities such as selling downstream products, fertilisers and fresh fruit bunches (FFB) directly to palm oil mills in bulk. As of April 30 this year, total FFB sales by the 70 KPSMs nationwide have reached 87,124.03 metric tonnes. Chan also presented mock cheques for the TSPKS scheme, MSPO certificates, and oil palm smallholder licences. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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