RM2 Million Channelled to Smallholders in Pitas

8 September 2025

PITAS: The MADANI Government remains committed to empowering independent oil palm smallholders in Sabah, with more than RM2 million allocated in Pitas District to strengthen their participation in the sustainable palm oil supply chain.

Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, officiated at the Sustainable Palm Oil Certification Enhancement Programme (MSPO) in Pitas, where he presented mock cheques totalling RM713,322 to eight recipients under the Oil Palm Smallholder Replanting Financing Incentive Scheme (TSPKS 2.0). The funding covers 39.63 hectares of replanting.

Chan explained that TSPKS 2.0 is a simple matching grant scheme introduced by the Government through the Malaysian Palm Oil Board (MPOB), specifically for independent smallholders with plantations under 10 hectares. Repayments only begin from the fifth year after receiving the grant, giving smallholders more time and flexibility. To date, 707 applications involving 3,034.20 hectares have been approved in Sabah.

To further support replanting activities, the Government is also implementing the Smallholders’ Plantation Road Project (JLPK) to improve access to private oil palm holdings. In Pitas alone, six JLPK projects worth RM1.45 million have been approved.

Chan also highlighted Sabah’s impressive progress in MSPO certification. As of 31 August 2025, a total of 29,918 smallholders covering 184,564 hectares have been certified, representing a 97.62% certification rate in the state. Nationally, 209,033 independent smallholders managing 747,012 hectares of oil palm have achieved MSPO certification.

The Malaysian Palm Oil Board (MPOB) will continue providing support services and guidance on sustainable palm oil certification to independent smallholders nationwide through its network of TUNAS advisory offices.

The postponement of the European Union Deforestation Regulation (EUDR) enforcement until the end of December 2025 offers Malaysia’s palm oil industry additional time to strengthen compliance with sustainability certification for exports to EU member states.

To ensure smallholders are fully integrated into the mainstream agro-commodity sector, MPOB has established 49 TUNAS offices nationwide, supported by around 190 TUNAS officers. Besides assisting with MSPO certification, these offices provide guidance on Good Agricultural Practices (GAP) and support for replanting old and unproductive oil palm trees.

Further information on the TSPKS 2.0 Scheme is available via the official MPOB portal at www.mpob.gov.my, MPOB branch offices, or any Agrobank branch nationwide.