KPK Reviewing TSPKS 3.0 Mechanism To Boost Oil Palm Productivity - Johari
KUALA LUMPUR, Nov 3 (Bernama) -- The Ministry of Plantation and Commodities (KPK) is in the process of identifying a more comprehensive and effective implementation mechanism for the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) 3.0, aimed at maximising its impact on independent smallholders.
Its Minister, Datuk Seri Johari Abdul Ghani, said the initiative is expected to increase the national oil palm replanting rate as well as productivity.
He said KPK is also working to further improve the long-term implementation of oil palm replanting activities to ensure they remain relevant for all levels of industry players, especially independent smallholders.
“KPK has always prioritised independent smallholders, introducing TSPKS 2.0 in 2024 to help ease their financial burden across Malaysia in carrying out oil palm replanting programmes,” he said when winding up the Supply Bill (Budget 2026) debate for his ministry at the Dewan Rakyat today.
Meanwhile, Johari said KPK has submitted an application related to the TSPKS Financing Incentive Scheme to the Ministry of Finance (MoF), and the application is under consideration.
In strengthening oil palm replanting activities in 2026, he said an allocation of RM100 million, announced under Budget 2026, will fund replanting costs at RM14,000 per hectare in Peninsular Malaysia and RM18,000 per hectare in Sabah and Sarawak.
From this total allocation, the ministry targets 5,900 hectares to be involved in replanting activities, benefiting an estimated 1,500 independent smallholders, said Johari.
“This mechanism has been easy to implement and well-received by independent smallholders since it was introduced in 2024. KPK will continue to enhance the scheme from time to time to ensure the welfare of smallholders is safeguarded,” he said.
Meanwhile, Johari said the implementation of the Rubber Production Incentive (IPG) has so far benefited 252,069 smallholders, with total payments amounting to RM530 million.
For this year and 2026, he said the government has allocated RM171 million annually for the implementation of the IPG programme.
He added that KPK is currently in the final stages of preparing a proposal to improve the IPG into a productivity-based incentive scheme.
“Through this new proposal, smallholders producing rubber will continue to receive the current production incentive, with an additional productivity incentive if they achieve the stipulated output levels,” Johari said.
The Dewan Rakyat sitting resumes tomorrow.
-- BERNAMA