Chan (third left) with the smallholders in Pitas district who received the allocations.
PITAS (Sept 8): The MADANI Government remains committed to empowering independent oil palm smallholders in Sabah, with more than RM2 million allocated in the Pitas district to strengthen their participation in the sustainable palm oil value chain.
When officiating the Sustainable Palm Oil Certification Strengthening Programme (MSPO) in Pitas on Monday, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin presented mock cheques amounting to RM713,322 to eight recipients under the Oil Palm Smallholders Replanting Financing Incentive Scheme (TSPKS 2.0), covering a replanting area of 39.63 hectares.
He explained that TSPKS 2.0 is a matching grant scheme introduced by the government through the Malaysian Palm Oil Board (MPOB) for independent smallholders with plantation areas below 10 hectares.
Repayments under this scheme only begin in the fifth year after approval, giving smallholders greater flexibility and sufficient time to strengthen their productivity. To date, 707 applications covering 3,034.20 hectares in Sabah have been approved.
To further support replanting activities, the government is also implementing the Smallholders’ Plantation Road Project (JLPK) to improve access to independent oil palm holdings.
In Pitas alone, six JLPK projects worth RM1.45 million have been approved.
Chan also highlighted Sabah’s strong achievement in MSPO certification. As of 31 August 2025, a total of 29,918 smallholders covering 184,564 hectares have obtained MSPO certification, representing a 97.62% certification rate in the state. Nationwide, 209,033 independent smallholders managing 747,012 hectares have successfully achieved MSPO certification.
The Malaysian Palm Oil Board (MPOB) will continue to provide support and guidance on sustainable palm oil certification to independent smallholders nationwide through its network of TUNAS Service and Advisory Offices.
The postponement of the European Union Deforestation Regulation (EUDR) enforcement until the end of December 2025 provides an opportunity for Malaysia’s oil palm sector to further strengthen its compliance with global sustainability certification for exports to EU countries.
To ensure independent smallholders are not left behind, MPOB has established 49 TUNAS branch offices nationwide, supported by approximately 190 TUNAS officers. These offices offer MSPO certification guidance, Good Agricultural Practices (GAP) training, strategic fertiliser application advice, and replanting guidance for ageing or unproductive palms.
Further information on TSPKS 2.0 Scheme is available via MPOB’s official website at www.mpob.gov.my, MPOB branch offices, or any Agrobank branch nationwide.
Source: The Borneo Post Online
