Government's Stance

The government has stated that there are no current plans to reinforce the oil palm replanting programme solely through grants. This was confirmed by the Ministry of Plantation and Commodities (MPC), specifically by Deputy Minister Datuk Chan Foong Hin.

New Allocation

To support the replanting efforts, the government has allocated RM100 million for the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0) in 2024. This allocation is provided in a hybrid form, consisting of 50% grants and 50% loan financing.

Beneficiaries

The scheme is estimated to benefit around 1,500 oil palm smallholders. The replanting efforts under this scheme will cover an area of 5,900 hectares.

Current Approvals

As of July 12, 2024, a total of 413 smallholders have been approved for the scheme. These approvals cover an area of 1,725 hectares and involve allocations totaling RM26.93 million, as reported by the Malaysian Palm Oil Board.

Eligibility

Only independent smallholders are eligible to benefit from the replanting initiative under TSPKS 2.0. Organised smallholders do not qualify for this scheme.

Smallholder Statistics

As of March 2024, Malaysia has a total of 441,847 smallholders. This number is divided into 233,439 organised smallholders and 208,408 independent smallholders.

Source: The Sun