PLANTATION & COMMODITIES
November-December. 2025 | @ AGROBiz
PLANTATION & COMMODITIES
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Sabah tops replanting funding
• Sabah tops TSPKS 2.0 funding with RM61 million in matching grants for oil palm smallholders.
• 796 applications approved covering 3,420 hectares, including 155 hectares in Sandakan.
• Malaysia aims to reduce reliance on rubber imports, potentially saving RM4 billion.
SABAH LEADS TSPKS: About 30,768 smallholders in Sabah have obtained MSPO certification, boosting sustainability and market acceptance.
SABAH has emerged as the largest recipient under the Smallholder Oil Replanting Financing Incentive Scheme( TSPKS) 2.0, securing RM 61 million in matched grants from the RM100 million allocated nationwide this year, according to Plantation and Communities Deputy Minister Datuk Chan Foong Hin.
Managed by Agrobank, the scheme has approved 796 applications from independent smallholders in Sabah to date.
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“ The approved applications cover an area of 3,420.04 hectares, involving an allocation of RM61.56 million, including 34 applications in Sandakan spanning 155.76 hectares with an allocation of RM2.8 million,” Chan said after officiating a programme with oil palm smallholders recently.
“ Sabah is the largest recipient under the oil palm replanting scheme. Last year, RM41 million was channelled to the state, and this year, the amount has already exceeded RM61 million. This is how
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the MADANI( government) works.”
Highlighting sustainability efforts, Chan noted that as of Oct 15, 30,768 smallholders in Sabah had obtained Malaysian Sustainable Palm Oil( MSPO) certification, covering 191,517.96 hectares of oil palm plantations.
“ The implementation of MSPO not only enhances global market acceptance but also benefits smallholders through Good Agricultural Practices( GAP) management, environmental protection and improved product quality,” he said.
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Looking ahead, Chan said the government has earmarked RM120 million under Budget 2026 to support the welfare and productivity of smallholders across Malaysia’ s commodity sectors, including oil palm, rubber, cocoa, pepper, and kenaf.
The initiative reflects a broader commitment to ensure smallholders are well-supported in both financial and sustainable farming practices, helping them meet market demands while improving farm management and environmental stewardship.
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Rubber sector strengthened
THE government believes that Malaysia could save an estimated RM4 billion by increasing natural rubber production to at least 400,000 tonnes of cuplump and 20,000 tonnes of latex, thereby reducing reliance on imports.
The Ministry of Plantation and Commodities( MPC) highlighted that boosting domestic production would help restore the country’ s rubber industry’ s competitiveness. The statement was posted on the parliament website recently.
Through the Malaysian Rubber Board( MRB), the ministry has rolled out a range of strategic measures to ensure price stability and support the income of smallholders and tappers.
Among them is the Rubber Production Incentive( IPG), which aims to guarantee the welfare of smallholders when prices fall below the Activation Price Level( APL).
“ The National Rubber Industry Transformation Program( TARGET) is implemented to increase the income of smallholders through their direct involvement in selling cup 2lump directly to the Crip Rubber Processing Centre,” the ministry said.
The ministry also noted the Latex Production Incentive( IPL +), a pilot initiative in Kedah, Perak, Selangor, and Negeri Sembilan designed to promote latex production among smallholders.
According to the MPC, smallholders switching to latex production enjoy more stable and higher earnings than those from traditional cuplump cultivation.
SECURING LIVELIHOODS: Rubber plantations supported by government schemes improve productivity while safeguarding the livelihoods of tappers.
The statement was made in response to a question from Datuk Adnan Abu Hassan( BN-Kuala Pilah) on measures to maintain sustainable rubber prices, including implementing a floor price, strengthening the downstream sector, and providing income support to ensure tappers’ livelihoods and the competitiveness of Malaysia’ s rubber industry.
By combining production incentives with market mechanisms, the government aims to safeguard smallholders’ incomes, enhance the sector’ s sustainability, and reduce reliance on rubber imports, thereby strengthening Malaysia’ s position in the global rubber market.
- @ AGROBiz