The annual replanting grants allocated to smallholders have been reduced by 85% from RM 200 million to only RM 30 million for the year of 2017.
I had in Parliament questioned Minister of Plantation, Industries and Commodities, Dato’ Mah Siew Keong the reason why many smallholders’ applications for replanting grants have not been approved even though they are qualified to receive the replanting grants.
Dato’ Mah Siew Keong explained that under the 10th Malaysian Plan from 2010-2015, a sum of RM 1.0 billion was allocated or an average of RM 200 million per year as replanting grants for smallholders. However, under the 11th Malaysian Plan from 2016-2020, the Government has planned to allocate only RM 540 million or RM 108 million per year as replanting grants for smallholders which is a reduction of 46% when compared to the amount allocated under the 10th Malaysian Plan.
However, the Government is only able to allocate a sum of RM 30 million as replanting grants to smallholders for the year 2017, a reduction of 85% if compared with the average annual sum of RM 200 million allocated under the 10th Malaysian Plan. This is adding salt to the wounds of the 1.0 million smallholders in the country of which about 550, 000 are oil palm smallholders and about 450, 000 are rubber smallholders.
Bulk of the amount allocated for replanting grants in fact comes from the smallholders themselves. The replanting grants come from the rubber cess paid by rubber smallholders when they sell their rubber and the windfall tax paid by oil palm smallholders.
I call on the Government not to rob what rightfully belongs to the smallholders. I also call on the Government to increase the smallholders replanting grant to at least RM 200 million a year immediately.