RM1.6 mln aid for Sabah smallholders as govt pushes sustainable palm oil
Chan (front row, third from left) in Keningau to launch the Oil Palm Smallholder Replanting Financing Incentive Scheme 2.0 (TSPKS 2.0) programme.
PENSIANGAN (June 10): Deputy Plantation and Commodities Minister Datuk Chan Foong Hin has reaffirmed the Government's commitment to supporting oil palm smallholders in Sabah's interior by delivering over RM1.625 million in assistance to 21 independent smallholders, covering a total area of 90.32 hectares for replanting purposes.
During his two-day working visit to Pensiangan, Keningau, and Tenom from June 9 to 10, Chan emphasised the strategic importance of Sabah as Malaysia's leading crude palm oil (CPO) producing state. He noted that the government remains focused on ensuring sustainable development in the palm oil sector, particularly for smallholders, by helping them align with global trends and market expectations.
The allocation under the Oil Palm Smallholder Replanting Financing Incentive Scheme (TSPKS 2.0) was disbursed through the Malaysian Palm Oil Board (MPOB) during the visit. In addition, subsidies for Malaysian Sustainable Palm Oil (MSPO) certification, support for good agricultural practices (GAP), chemical storage racks and personal protective equipment (PPE) were also provided to enhance smallholders' compliance with MSPO standards.
In Pensiangan, RM391,752 was channelled to five smallholders; in Keningau, eight smallholders received a total of RM713,534.40; and in Tenom, another eight smallholders benefited from RM520,425 in assistance.
'Interior Sabah has great potential for palm-based commodities. The government not only provides financial assistance but also steers smallholders toward sustainable development through supportive policies,' said Chan.
He highlighted that MSPO certification not only enhances international market recognition for Malaysian palm oil but also brings tangible benefits to smallholders, such as improved farming practices, environmental conservation, higher product quality, and ultimately, increased income.
As of 30 April 2025, 30,768 smallholders in Sabah have obtained MSPO certification, covering a total area of 191,204.27 hectares, representing a 97.62% certification rate — among the highest in the country.
Chan also underscored the need for replanting oil palm trees over 25 years old or those no longer productive, to ensure sustained yields of fresh fruit bunches (FFB) and stable incomes for smallholders.
He urged smallholders nationwide to apply for the Oil Palm Smallholder Replanting Financing Incentive Scheme (TSPKS 2.0), which offers RM100 million in matching grant support, fully managed by Agrobank. The scheme is designed to ease the financial burden of replanting and promote long-term productivity.
To date, 571 applications under TSPKS 2.0 have been approved in Sabah, covering a total replanting area of 2,505.06 hectares. This includes four approved applications in Pensiangan involving 19.89 hectares, 83 applications in Keningau covering 398.27 hectares, and nine applications in Tenom involving 33.48 hectares.
Chan also acknowledged the achievement of Koperasi Penanam Sawit Mampan (KPSM) Apin-Apin, which successfully became the first KPSM in Sabah to obtain MSPO certification for their Pusat Timbang (weighing centre). This achievement setting an important example for other cooperatives in Sabah and Malaysia to obtain their MSPO Certification.
He concluded by encouraging all eligible smallholders to make full use of the available incentives and government programmes to enhance their livelihoods and contribute to the sustainability of Malaysia's palm oil industry.
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