Kuala Lumpur:The government will allocate RM200 million in easy financing to assist smallholders with the costs of oil palm replanting for areas up to 40 hectares. This initiative includes a four-year deferment on repayments while the trees mature, as announced by Prime Minister Datuk Seri Anwar Ibrahim.

According to BERNAMA News Agency, the financing plan stipulates that smallholders are only required to pay two percent interest, with the government subsidizing the remainder. Additionally, the government has decided to increase the rubber production incentive (IPG) rate to RM3.30 per kilogram, benefitting over 300,000 smallholders. This marks the third increase in the IPG rate, which was previously RM3.00 per kilogram, and RM2.50 in 2022.

As of September 2026, 290,000 smallholders, including farmers and livestock breeders, along with oil palm, rubber, cocoa, pepper, and kenaf planters, received monthly subsidy assistance of RM400. The government has also approved RM1.26 billion in the 2027 budget to enhance the finances of the Federal Land Development Authority (FELDA), road maintenance, and housing for the FELDA generation.

The prime minister noted that 109,000 settlers now have land ownership, and the average net income has increased from RM2,272 in 2023 to RM3,800 in 2026. Furthermore, he mentioned that the delisting of FGV Holding Bhd has contributed to strengthening FELDA's financial position.