TAWAU: An allocation of RM1 million has been approved for the implementation of the 8-km Sin Onn Tiku Farm Road Project, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin on Thursday.
Chan said the road, which is regularly used by many smallholders in the oil palm sector, is in poor condition, particularly during rainy weather.
“In February, Tawau Municipal Council Member Yap Wui Lip, accompanied by officers from the Malaysian Palm Oil Board (MPOB) and the Sabah Department of Irrigation and Drainage (DID), visited the site to assess the situation and submitted a report to me.
“The allocation for repairing the Sin Onn Tiku plantation road has now been approved under the Plantation and Commodities Ministry (KPK),” he said, when launching the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0), here, Thursday.
The event was an initiative by the Government to engage with oil palm smallholders, particularly in Tawau, aimed at disseminating information about the TSPKS 2.0, offering funding in the form of grants and financing through Agrobank.
“TSPKS 2.0, applicants are only required to repay 50 per cent of the total amount, including two per cent interest rate on the total funds disbursed.
“This scheme provides grant incentives and easy financing at a low profit rate to assist smallholders in cutting down old or unproductive oil palm trees (over 25 years old) and replanting with higher-quality ones,” Chan said.
According to him, the initiative not only alleviates the financial burden on smallholders but also enhances the yield of Fresh Fruit Bunches and improves the income of smallholders and the nation.
“This scheme is expected to benefit 1,500 individual smallholders, with a target of replanting 5,900 hectares of oil palm.
“So far TSPKS Financing Incentive Scheme has approved 95 applications, covering an area of 446.76 hectares of oil palm plantations in the district,” he said.
Chan also urged smallholders who had not yet submitted their applications to take this opportunity to start replanting activities so that palm oil production in Sabah remains at an optimal level.
Other than that, he said the Government, through MPOB, is committed to empowering oil palm smallholders through various initiatives.
“The Oil Palm Integrated Farming Scheme (ITa) has been introduced to optimise land use and increase the income of smallholders through cash crops such as pineapples, serai and watermelons. Four cash crop projects have so far been approved in Tawau.
“The Livestock Integration Scheme (ITe) has also been introduced to enhance the income sources of smallholders. In Sabah, a total of 430 projects have been approved, including 38 poultry farming and 14 duck farming in the district,” he said.
Furthermore, he said, the Government, through MPOB, would continue to intensify efforts to increase smallholder participation in achieving Malaysian Sustainable Palm Oil (MSPO) Certification compliance.
Chan added that MPOB had established the 30 Tan Club as recognition for smallholders who achieve Fresh Fruit Bunch (FFB) production of 30 tons per hectare per year or more.
“This initiative is aimed at appreciating the excellence of smallholders in enhancing productivity. To date, the membership of the 30 Tan Club has reached 2,772 individuals nationwide, with 488 or 17.6 per cent of them being smallholders in Sabah.
“This proves that smallholders are capable of achieving high yields through good agricultural practices,” he said.
He added that as of March, the Ministry had allocated RM63.34 million for similar projects nationwide, including nearly RM18 million for 133km of completed farm roads in Sabah.
Information on TSPKS 2.0 applications can be obtained at Tunas MPOB offices.
