Agrobank to fully disburse RM200mil under oil palm smallholder scheme by October
SERDANG: Bank Pertanian Malaysia Bhd (Agrobank) aims to fully utilise RM200 million in financing for oil palm smallholders under the TSPKS 2.0 replanting scheme by October this year.
Serdang: Malaysia Agricultural Bank Bhd (Agrobank) plans to fully utilize RM200 million in financing for oil palm smallholders under the TSPKS 2.0 replanting scheme by the end of October this year, according to Datuk Tengku Ahmad Badli Shah Raja Hussin, the group president and group chief executive officer. The bank has approved 4,380 applications worth RM190.99 million so far.
Tengku Ahmad Badli announced this during the launch of the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) 2.0 system, which was developed jointly by Agrobank and the Malaysian Palm Oil Board (MPOB). This system aims to simplify applications and monitoring under the scheme by enabling MPOB officers to upload relevant information and documents during site visits.
The system was introduced at the Malaysia Agriculture, Horticulture and Agrotourism Exhibition 2026 by Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad. The scheme offers a 50-50 funding structure, providing a 50% grant and 50% financing to eligible independent oil palm smallholders to replant aged or low-yielding trees.
The scheme is open to smallholders owning oil palm plantations up to 4.047 hectares in size. Tengku Ahmad Badli hinted that the government could provide extra funding for the scheme next year, pending approval from the Finance Ministry. He also mentioned that the same digital platform could be utilized for future funding approval, allowing for continuous monitoring of applications throughout the financing process.
Through this system, once additional funding is secured, the existing application can be used, ensuring complete monitoring of the entire financing process from submission to disbursal. TSPKS 2.0 is an extension of the initial TSPKS 1.0 program and is implemented in collaboration between the Plantation and Commodities Ministry, MPOB, and Agrobank.
The initiative aims to assist independent smallholders in executing replanting activities more systematically, thereby enhancing productivity, farm resilience, and long-term income.
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