Sabah receives RM61 million from the government’s RM100 million oil palm replanting scheme, covering 3,420 hectares for 796 smallholders.
SANDAKAN: Sabah has emerged as the largest beneficiary under the Smallholder Oil Palm Replanting Financing Incentive Scheme 2.0.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the state received RM61 million in matching grants from the government’s RM100 million allocation this year.
The scheme, managed by Agrobank, has approved 796 applications from independent smallholders in Sabah to date.
These approvals cover 3,420.04 hectares with an allocation of RM61.56 million.
“Sabah is the largest recipient under the oil palm replanting scheme,” Chan told reporters after officiating a programme with oil palm smallholders.
He noted that RM41 million was channelled to the state last year, while this year’s amount has already exceeded RM61 million.
“This is how the MADANI Government works,” he added.
In Sandakan alone, 34 applications covering 155.76 hectares received RM2.8 million in funding.
Chan also revealed that 30,768 smallholders in Sabah had obtained Malaysian Sustainable Palm Oil certification as of October 15.
The certification covers 191,517.96 hectares of oil palm plantations.
“The implementation of MSPO not only enhances global market acceptance but also benefits smallholders through Good Agricultural Practices management, environmental protection and improved product quality,” he said.
Under Budget 2026, the government has allocated RM120 million to safeguard and improve the well-being of smallholders across various commodity sectors.
This funding will support oil palm, rubber, cocoa, pepper and kenaf smallholders nationwide. – Bernama
