41,334 Small Palm Oil Farmers Under TSPKS 2.0 - KPK
KUALA LUMPUR, Oct 29 (Bernama) -- An estimated 41,334 smallholder oil palm farmers covering 105,172.67 hectares have been identified as being under the Oil Palm Smallholder Replanting Financing Incentive Scheme 2.0 (TSPKS 2.0), according to the Ministry of Plantation and Commodities (KPK).
As for the Oil Palm Replanting Financing Programme (PTSS), Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said that based on Malaysian Palm Oil Board data, 826 smallholders with a planting area of 21,850.04 hectares are involved in the programme.
“The ministry welcomes the suggestion from Tangga Batu MP Bakri Jamaluddin that replanting assistance be provided in the form of full grants accompanied by temporary income support for smallholders.
“However, this is subject to implementation costs and the availability of government allocations,” she said when winding up the debate on the Supply Bill 2027 (Budget 2027) at the policy level for KPK in the Dewan Rakyat today.
KPK has been allocated RM818.03 million under Budget 2027, with RM470 million dedicated to five main initiatives focusing on the agri-commodity sector, including RM100 million for the TSPKS 2.0 and PTSS programmes.
Under TSPKS 2.0, assistance is provided through a hybrid financing method consisting of 50 per cent grants and 50 per cent financing, subject to the scheme’s conditions. The scheme targets smallholders with plantation areas up to a specified limit, namely, up to 6.5 hectares in Peninsular Malaysia and up to 10 hectares in Sabah and Sarawak.
For smallholders with plantation areas exceeding the TSPKS 2.0 limit, PTSS has been provided with an allocation of RM200 million.
“Both of these mechanisms provide assistance channels that take into account the needs of smallholders with different holding sizes, as well as to encourage the renewal of old plantations and maintain long-term productivity,” she said.
Meanwhile, on the export duty on crude palm oil (CPO), Noraini said the proposal to suspend the duty has been discussed with the industry and is subject to consideration by the Ministry of Finance (MOF).
She said matters related to the determination, exemption, or suspension of export duties fall under the jurisdiction of the Ministry of Finance (MOF).
“The ministry acknowledges the proposal to temporarily defer the CPO export duty for three to five months to stimulate exports and reduce stock pressure.
“KPK held an engagement session with industry players on Oct 20, 2026. The session also involved representatives from ministries and agencies, including MOF, industry associations, as well as plantation companies and logistics operators, to gather industry views regarding the proposal for the CPO export duty exemption,” she added.
-- BERNAMA