Malaysia proposes RM280 million for oil palm smallholder replanting

Prime Minister Anwar Ibrahim has announced several proposed initiatives for the 2027 Budget aimed at strengthening Malaysia's agricommodity sector and increasing the productivity and income of smallholders.

A central proposal involves RM280.03 million for the Oil Palm Smallholders Replanting Program (TSPKS) 2.0. This program utilizes a hybrid approach, consisting of a 50% grant and a 50% loan with a 2% interest rate, to help smallholders replace old or unproductive trees.

Other proposed allocations include:

• RM100 million for the Private Smallholder Plantation Road Project to improve infrastructure and access to agricultural areas.

• RM28.57 million for a Disaster and Disease Control Fund to mitigate the impact of natural disasters and crop diseases.

• RM17.05 million for the Empowerment of Downstream Agricommodity Entrepreneurs to increase product value and create new income opportunities.

Additionally, the government is considering monsoon season assistance of RM400 per month for approximately 270,000 smallholders.