Prime Minister Datuk Seri Anwar Ibrahim says the government is considering RM425.65 million in agro-commodity initiatives for Budget 2027.
PUTRAJAYA: The government is considering RM425.65 million in agro-commodity initiatives under Budget 2027, including RM280.03 million for oil palm smallholder replanting and an additional RM100 million to improve farm roads.
Prime Minister Datuk Seri Anwar Ibrahim said the measures were among several proposals being studied as key initiatives for next year’s budget, with support also being considered for downstream entrepreneurs as well as disaster and disease control.
“These are several additional matters that we are studying as key initiatives under Budget 2027,” he said during a monthly assembly with Plantation and Commodities Ministry staff here today.
Anwar said RM280.03 million was being considered for the Oil Palm Smallholders Replanting Financing Incentive Scheme 2.0 (TSPKS 2.0).
A further RM100 million would be allocated to the Smallholder Farm Road Programme (JLPK), which he said would have a direct impact on productivity by improving access for agricultural activities and the transportation of produce.
“The roads do not need to be too sophisticated. You don’t need to bring a Mercedes there. They are for tractors and farm facilities. We are adding RM100 million for that,” he said.
The proposed package also includes RM28.57 million for the Agro-Commodity Sector Disaster and Disease Control Fund and RM17.05 million to strengthen downstream agro-commodity entrepreneurs.
The four proposed allocations total RM425.65 million.
Anwar said the government’s priority remained assisting smallholders and smaller businesses despite fiscal constraints, while ensuring that public spending generated tangible benefits.
“If there is a need, even though there are constraints, our first priority, as I have said, is eradicating poverty.
“Second are small traders, from stalls and small restaurants to smallholders, because their numbers are large and the problems they face are also increasing,” he said.
He said the government could not neglect these groups but stressed that stronger economic growth was necessary to create greater fiscal room for assistance.
“If the economy is sluggish, revenue will fall. I cannot announce additional assistance.
“In next month’s budget, I cannot increase assistance for the people if there is no growth,” he said.
Under Budget 2026, RM100 million was allocated for the oil palm replanting incentive, structured as a 50% grant and 50% soft loan financing at an interest rate as low as 2%.
The government also allocated RM50.7 million to JLPK this year, comprising RM17.7 million for Peninsular Malaysia, RM30 million for Sabah and RM3 million for Sarawak.
The Finance Ministry and Plantation and Commodities Ministry discussed proposals for Budget 2027 on Aug 27, including support for downstream entrepreneurs, crop disease and extreme weather risks, basic infrastructure and smallholder productivity, although no specific amounts were disclosed at the time.
