Pensiangan: The government has disbursed over RM1.62 million in assistance to 21 independent oil palm smallholders in Sabah’s interior regions, covering 90.32 hectares for replanting purposes. Deputy Plantation and Commodities Minister Datuk Chan Foong Hin announced this during his two-day working visit to Pensiangan, Keningau, and Tenom, which concluded today.

According to BERNAMA News Agency, the allocation was distributed through the Malaysian Palm Oil Board (MPOB) under the Oil Palm Smallholder Replanting Financing Incentive Scheme (TSPKS 2.0). It was reported that five smallholders in Pensiangan received RM391,752, eight in Keningau were allocated RM713,534.40, and another eight in Tenom benefited from RM520,425.

Chan highlighted that the interior of Sabah holds significant potential for palm-based commodities. The government is not only providing financial assistance but also guiding smallholders towards sustainable development through supportive policies. The assistance package also includes subsidies for Malaysian Sustainable Palm Oil (MSPO) certification, support for good agricultural practices, chemical storage racks, and personal protective equipment to enhance compliance with MSPO standards.

As of April 30, Sabah has achieved a noteworthy 97.62 percent MSPO certification rate, with 30,768 smallholders certified across 191,204.27 hectares. The TSPKS 2.0 scheme, managed by Agrobank with a RM100 million matching grant, has approved 571 applications in Sabah, covering a total of 2,505.06 hectares.

Chan also praised Koperasi Penanam Sawit Mampan (KPSM) Apin-Apin for becoming Sabah’s first KPSM to obtain MSPO certification for their weighing center. He stated 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.