KUALA LUMPUR: The government has approved RM52.9 million in funds under the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS2.0), involving 1,165 palm oil smallholders and 3,378ha as of Oct 14.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said under Budget 2024, the government allocated RM100 million for the scheme, with a targeted replanting area of 5,900ha.
He said as of Oct 14, the ministry received applications from 2,311 smallholders involving 7,699ha.
"Of these, applications from 1,165 smallholders involving 3,378ha and financing of RM52.9 million had been approved.
"The remaining is currently in the approval process," he said.
Johari said this in response to a question from Datuk Mohd Isam Mohd Isa (BN-Tampin), who asked about the number of smallholders that had benefited from the oil palm replanting programme.
Mohd Isam also wanted to know whether the ministry had any plans to extend the initiative to rubber smallholders who wanted to switch to planting oil palm.
Johari said the country's oil palm replanting for smallholders currently stands at 0.2 per cent, which is significantly lower than the standard of four per cent.
Malaysia used to produce about 20 million tonnes of palm oil, but this has now decreased to 18.6 million metric tonnes.
"This is because we have not been carrying out replanting systematically, resulting in only about 0.2 per cent of replanting for smallholders today, compared to the standard we need to achieve, which is four per cent per year," he said.
Johari said he would discuss Mohd Isam's request for the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0) to be 100 per cent grant-funded, as was practiced by the Barisan Nasional government.
Currently, the scheme consists of a grant component (50 per cent) and a financing component (50 per cent) for individual smallholders.
"If YB (Yang Berhormat) sympathises with smallholders, I feel the same way. In the context of YB requesting a 100 per cent grant, I will discuss this with the Finance Ministry, not only to increase replanting efforts but also to facilitate smallholders in boosting their production.
"Let's wait until Friday for the tabling of the 2025 Budget," he said.
Johari said TSPKS 2.0 focuses more on the replanting programme for old and unproductive oil palm trees.
"The conversion from rubber to palm oil is not allowed. The government also does not encourage the transition from rubber to palm oil because rubber is still needed at the national level."