TAWAU: The Government allocated RM100 million last year for the implementation of the Oil Palm Smallholders Replanting Financing Incentive Scheme (TSPKS 2.0), aimed at supporting oil palm replanting efforts.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin (pic) said the scheme is expected to benefit 1,500 private oil palm smallholders, targeting the replanting of approximately 5,900 hectares.
He said that to date, the TSPKS Financing Incentive Scheme has recorded 95 approved applications, covering 446.76 hectares of oil palm plantations in the Tawau district.
According to him, under this financing scheme, applicants are required to repay only 50 percent of the total amount, including a two per cent interest rate based on the overall disbursed fund.
Chan said this at the launch of Tawau District-level TSPKS 2.0 held at a prominent hotel here Thursday. Also present were Tawau MP Datuk Lo Su Fui and Malaysian Palm Oil Board (MPOB) Director-General Datuk Dr Ahmad Parveez Ghulam Kadir.
Meanwhile, the Plantation and Commodities Ministry remains committed to improving infrastructure facilities for smallholders through the Smallholders Plantation Road Project (JLPK).
Chan said as of February 2025, three projects have been approved in Tawau with a total allocation of RM2 million, aimed at improving accessibility and operational efficiency for smallholder plantations.
He added that the Government, through MPOB, is also actively promoting the participation of smallholders in compliance with the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
MPOB has also established the “30 Tonne Club” to recognise smallholders who achieve a yield of 30 tonnes of fresh fruit bunches (FFB) per hectare per year or more.
“To date, the 30 Tonne Club has recorded 2,772 members 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 added.
