Datuk Seri Dr Noraini Ahmad

KUALA LUMPUR (July 31): More than 4,300 independent oil palm smallholders have benefited from RM190.13 million in financing under the Oil Palm Smallholder Replanting Financing Incentive Programme (TSPKS 2.0), reflecting the government’s continued efforts to rejuvenate the country’s oil palm industry and improve smallholder productivity.

Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said in a statement that, as of June 30, 2026, a total of 4,364 independent smallholders had received financing under the TSPKS 2.0 programme, involving 12,145.51 hectares of oil palm plantations.

She said TSPKS 2.0 enables smallholders to replant oil palm trees that have exceeded their economic lifespan, helping to improve plantation productivity, increase yields and enhance farmers’ incomes.

Noraini said the government has approved a total allocation of RM200 million for the programme, comprising RM100 million in 2024, RM50 million in 2025 and another RM50 million in 2026.

She added that of this year’s allocation, RM47.61 million had been approved for 1,133 smallholders as of June 30, 2026.

According to her, the programme has also contributed to an increase in the national oil palm replanting rate from 2.0 per cent in 2024 to 3.4 per cent in 2025.

To achieve the target of increasing the national replanting rate to at least four per cent annually by 2030, Noraini said KPK will continue expanding TSPKS 2.0, encourage the use of high-quality planting materials, strengthen the role of Malaysian Palm Oil Board (MPOB) TUNAS officers, and increase the adoption of mechanisation and automation in the sector.

She said the ministry would also continue strengthening group participation among smallholders through the Sustainable Oil Palm Growers Cooperative (KPSM) to further enhance the effectiveness of the programme.

Noraini said replanting is a vital investment to ensure higher yields, better incomes for smallholders and the long-term sustainability of Malaysia’s palm oil industry.

She reaffirmed KPK’s commitment to ensuring the country’s oil palm industry remains productive, competitive and sustainable while continuing to improve the well-being of independent smallholders nationwide.

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