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KPSM guarantees smallholders' inclusiveness in new economic model -- MPIC

21/06/2022 05:11 PM

KUALA LUMPUR, June 21 (Bernama) -- The government has established the Sustainable Oil Palm Growers Cooperatives (KPSM) to ensure smallholders’ involvement in Malaysia’s new economic model, said the Ministry of Plantation Industries and Commodities (MPIC). 

In a statement issued by the Malaysian Palm Oil Board (MPOB) today, MPIC deputy minister Datuk Seri Dr Wee Jeck Seng said the government, through KPSM, has channelled various assistance and support to increase the activities of the cooperatives and the development of oil palm smallholders.

“The government has introduced a grant of RM200,000 for the construction of a weighing centre for each cooperative. The provision of the grant is to cover the cost of site preparation, platform construction and purchase of a bridge by KPSM,” he said in his speech at the launch of the Pusat KPSM Sungai Sibuga Sandakan Bhd in Sandakan, Sabah today.

He added that the government, through MPOB, has also introduced an interest-free easy financing scheme amounting to RM200,000 for each KPSM.

As of May 2022, a total of 16 KPSMs have enjoyed the facility, he said.

“The provision of the soft loan scheme can increase KPSM’s capacity, especially in the purchase of fresh fruit bunches (FFB) supplied by the smallholders,” he said.

Wee said a total of 61 KPSMs had implemented batch sales of FFB directly to factories with a total of 314,834.15 tonnes.

In addition, the government has also approved a machinery purchase scheme for KPSMs in the form of a matching grant with an allocation of RM20 million.

Meanwhile, to strengthen the implementation of the Malaysian Sustainable Palm Oil Certification (MSPO), he said, MPOB has established the Sustainable Palm Oil Cluster (SPOC) which involves the participation of private smallholder groups in producing sustainable palm oil.

“The government provides assistance in the implementation of MSPO certification to smallholders in the form of MSPO certification fees, MSPO-related training, provision of chemical storage racks, and supply of personal protective equipment to smallholders.

“The implementation of the MSPO certification will benefit smallholders in terms of a more transparent pricing of FFB based on the quality of oil palm fruits, environmental protection and social networking among the community,” he said.

A total of 162 SPOCs have been established to assist in the preparation of the MSPO certification, he noted. 

As of April 2022, oil palm smallholdings which have been MSPO-certified totalled 647,331 hectares, involving the participation of 167,549 independent smallholders nationwide.


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