Kuala lumpur: The Ministry of Plantation and Commodities (KPK) is actively evaluating a more comprehensive and effective implementation mechanism for the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) 3.0. This initiative is designed to maximize its impact on independent smallholders by increasing the national oil palm replanting rate and enhancing productivity.

According to BERNAMA News Agency, the Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani, emphasized the importance of improving long-term oil palm replanting activities to ensure their continued relevance for all industry players, particularly independent smallholders. During the winding up of the Supply Bill (Budget 2026) debate at the Dewan Rakyat, Johari highlighted that KPK had introduced TSPKS 2.0 in 2024 to alleviate the financial burden on smallholders throughout Malaysia.

Johari also mentioned that KPK has submitted an application concerning the TSPKS Financing Incentive Scheme to the Ministry of Finance (MoF), which is currently under consideration. For 2026, a budget allocation of RM100 million is set to support replanting costs, with RM14,000 per hectare allocated for Peninsular Malaysia and RM18,000 per hectare for Sabah and Sarawak. This funding aims to involve 5,900 hectares in replanting activities, benefiting approximately 1,500 independent smallholders.

The minister noted that since its introduction in 2024, the mechanism has been straightforward to implement and well-received by independent smallholders. KPK intends to continually enhance the scheme to ensure the welfare of smallholders.

In addition to oil palm initiatives, Johari reported that the implementation of the Rubber Production Incentive (IPG) has benefited 252,069 smallholders, with total payments reaching RM530 million. For this year and 2026, the government has allocated RM171 million annually for the IPG program. KPK is finalizing a proposal to transform the IPG into a productivity-based incentive scheme, offering additional incentives for smallholders who achieve specified output levels alongside the current production incentive.

The Dewan Rakyat sitting is set to continue tomorrow.