KUALA LUMPUR: A total of 1,500 independent smallholders, covering 5,900ha, are expected to benefit from the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) 2.0 under the 2027 Budget.
Plantations and Commodities Minister Datuk Seri Dr Noraini Ahmad said the programme aims to support independent smallholders in replanting activities and strengthen the sustainability of the oil palm sector.
“In addition, 740 independent oil palm smallholders, with a combined cultivation area of 11,110 hectares, are expected to benefit from the Oil Palm Replanting Financing Programme (PTSS),” she said when winding up the committee-stage debate on the Supply Bill 2027 in Dewan Rakyat today.
Under the 2027 Budget, Prime Minister Datuk Seri Anwar Ibrahim announced an allocation of RM200 million for TSPKS 2.0.
The government will also continue the PTSS, which provides financial assistance to eligible smallholders facing capital constraints.
Meanwhile, on the income of rubber smallholders, Noraini said that their actual earnings were influenced by production levels, including tapping frequency and the size of their plantations.
“The ministry will continue to maintain the rubber production incentive (IPG) as an income-guarantee mechanism based on the activation pricing level (PHP).
“Smallholders will benefit from the IPG, particularly when prices fall below the PHP threshold,” she said, adding that the IPG price threshold had been increased seven times since 2015.