KUALA LUMPUR: The Plantation and Commodities Ministry has expressed hope that the allocation provided by the government for the palm oil replanting process for smallholders in the 2025 Budget could help increase their income.
Despite the relatively small allocation for oil palm smallholders, minister Datuk Seri Johari Abdul Ghani said the government's allocation could still be effectively utilised to support the group.
He also said smallholders could take advantage of the RM65 million fund allocated for obtaining Malaysian Sustainable Palm Oil (MSPO) certification.
"I did request a larger amount, but did not receive everything. Nevertheless, some focus has been given to smallholders in the plantation and commodity industry.
"We also still have RM100 million to help smallholders continue their oil palm replanting efforts.
"(And) although we received RM100 million last year and have been allocated the same amount this year, we will proceed gradually over the next five years (to develop the industry)," he said when speaking to reporters after the tabling of the 2025 Budget in the Dewan Rakyat today.
In terms of the allocation for the palm oil replanting scheme, Johari said the existing framework would be retained, with 50 per cent given as grants and the remaining as loans from Agrobank.
"The framework for the palm oil replanting scheme remains unchanged, but I have not seen further details yet.
"Therefore, I assume it is a 50:50 split (50 per cent as grants and 50 per cent as loans from Agrobank).
"If the funds are fully utilised by mid-2025 or if they are depleted quickly, I will prepare a 'special paper' to request additional funding," said the Titiwangsa member of parliament.
Commenting on the 2025 Budget as a whole, Johari said it was expected to reduce the deficit to 3.8 per cent, compared to 4.3 per cent this year and five per cent the previous year.
"I want to emphasise that we must manage this budget prudently.
"As long as we need to borrow, spending must be cautious, and revenue must be increased. This is what the Prime Minister (Datuk Seri Anwar Ibrahim) is trying to achieve," he said.