1,500 oil palm smallholders to benefit from replanting financing incentive scheme

KUALA LUMPUR: The Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) 2.0, announced in the 2027 Budget, will aid 1,500 independent smallholders managing 5,900 hectares of land. This initiative, spearheaded by Plantations and Commodities Minister Datuk Seri Dr Noraini Ahmad, aims to bolster the sustainability of the oil palm sector by assisting smallholders in replanting activities.

Furthermore, 740 independent oil palm smallholders, with a total of 11,110 hectares under cultivation, are also anticipated to benefit from the Oil Palm Replanting Financing Programme (PTSS), as outlined during the conclusion of the committee-stage debate on the Supply Bill 2027 in Dewan Rakyat today. The budget allocation for TSPKS 2.0 stands at RM200 million, with the government planning to maintain the PTSS, which offers financial support to smallholders grappling with capital constraints.

Additionally, Noraini revealed that the earnings of rubber smallholders are primarily determined by production levels, such as tapping frequency and plantation size. The ministry will continue to uphold the rubber production incentive (IPG) as a mechanism to ensure income stability, guaranteeing payments to smallholders when prices dip below the PHP threshold. This PHP has been elevated seven times since 2015.