Govt looking for ways to boost smallholder income, says Anwar

Prime Minister Anwar Ibrahim has emphasized the government's efforts to boost the income of smallholders and ensure the agri-commodity sector continues to drive Malaysia's economic growth. The priority lies in eradicating poverty, assisting small businesses and traders, and strengthening the sector through higher productivity, technology use, and a more resilient value chain.

The government has initiated several programs to support smallholders, including the Agro-Commodity Sector Disaster and Disease Control Fund, the Smallholder Farm Road Programme, and the Smallholder Oil Palm Replanting Financing Incentive Scheme 2.0. The replanting programme will also contribute to raising productivity and income for smallholders in the long-term.

Anwar, who serves as both Prime Minister and Finance Minister, has taken steps to address rubber smallholders by increasing the Rubber Production Incentive (RPI) four times under the Madani administration. The RPI rate has risen from RM2.50 per kg in 2019 to RM3.00 per kg in 2024. For the oil palm sector, the government has introduced a hybrid financing approach, combining 50% grants and 50% easy loans at an interest rate as low as 2%, with an allocation of RM100 million for replanting financing.

Furthermore, the government has allocated RM50 million for maintaining plantation roads nationwide, up from RM8 million in 2022. As of September 2026, approximately 270,000 smallholders, including those involved in rubber, oil palm, cocoa, pepper, and kenaf farming, have received a monthly cash assistance of RM400 under the BUDI agri-commodities program.