The Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani delivered his speech at the Launching Ceremony of the book 'Agarwood: Diamond of the Forest' at Restoran Hening, Kuala Lumpur. NSTP/AIZUDDIN SAAD
KUALA LUMPUR: Plantation and Commodities Ministry aims to approve the full RM100 million allocation under the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) 2.0 by June this year.
Its minister Datuk Seri Johari Abdul Ghani said as of now, it has approved financing applications amounting to about half a million ringgit.
Johari said the ministry has also proposed an increased allocation for TSPKS 2.0 in the 2025 Budget to further strengthen smallholder productivity.
"My target is to fully utilise the RM100 million by June. If demand remains high, we may submit a special request to the Ministry of Finance for an additional RM100 million to assist smallholders," he said at the launch of "Buku Agarwood, Diamond of the Forest" here today.
Johari highlighted that in 2023, the government successfully disbursed RM100 million under the scheme, covering 5,980 hectares of oil palm plantations.
"If the country wants to remain a leading producer of palm oil in the world, the replanting process must be carried out. We cannot allow the trees to age without replanting.
"Therefore, the ministry will strive to assist smallholders in the replanting efforts to achieve the benchmark of at least four percent in oil palm replanting," he added.
In 2024, Malaysia managed to replant 114,000ha, or two per cent of its total planted area, a decline from 2023, when replanting covered 132,000ha (2.3 per cent).
This is below the recommended annual target of four to five per cent, which is approximately 285,000ha per year.
