The Ministry of Plantation and Commodities (KPK) continue to strengthen its commitment to supporting independent oil palm smallholders in Sabah through the implementation of the Program Santuni Pekebun Kecil Sawit at Sandakan and Tawau. The programs were officiated by the Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, on last Wednesday and Thursday.
The outreach programs serve as an important platform to engage directly with smallholders, disseminate information on the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme, and introduce various government incentives and assistance schemes aimed at improving productivity and income among smallholders in Sabah.
In his speech, Chan announced that Sabah has recorded the highest allocation in Malaysia under the Oil Palm Smallholders Replanting Financing Incentive Scheme (TSPKS 2.0), with a total of RM61,560,637.20 involving 796 approved applications covering 3,420.04 hectares.
The TSPKS 2.0 scheme, managed by Agrobank, provides matching grants to assist independent smallholders in replanting old oil palm trees to enhance long-term productivity, yield quality, and operational efficiency.
Of this total, Tawau district recorded 144 approved applications involving 674.31 hectares with an allocation of RM12,137,520.60, while Sandakan district recorded 34 approved applications covering 155.76 hectares, amounting to RM2,803,633.20.
Chan emphasised that this initiative reflects the government’s strong commitment to empowering smallholders through more efficient and sustainable replanting efforts.
He further stressed that the implementation of the MSPO certification not only ensures continued global market acceptance of Malaysian palm oil but also brings multiple benefits to smallholders, including adherence to Good Agricultural Practices (GAP), improved yields, and enhanced environmental stewardship.
As of 15 October 2025, Sabah recorded the highest MSPO certification rate in Malaysia, with 30,768 smallholders covering 191,517.96 hectares, representing a 96.09% compliance rate. In Tawau, 1,600 smallholders managing 15,614.57 hectares have obtained MSPO certification, while in Sandakan, 1,025 smallholders under SPOC S22 (7,384.25 hectares) and 701 smallholders under SPOC S23 (4,678.10 hectares) are certified.
“This achievement demonstrates that smallholders in Sabah are increasingly aware of the importance of sustainable and competitive plantation management,” said Chan.
In addition, the government has also channelled allocations for the upgrading of plantation access roads under the Smallholders Plantation Road Project (JLPK). As of 31 October 2025, a total of 57 JLPK projects have been approved across Sabah with a combined allocation of RM17,056,325.00. Among them, three projects in Tawau worth RM2 million were approved to improve logistics and facilitate the transportation of harvested crops. In line with this commitment, the MADANI Budget 2026 has also allocated an additional RM50 million for the maintenance and development of plantation roads nationwide, enhancing accessibility and convenience for smallholder communities.
To further strengthen the capacity of smallholder cooperatives, the Malaysian Palm Oil Board (MPOB) has introduced the KPSM Mechanisation Scheme (SMK) under the Mechanisation, Automation, Internet of Things (IoT), and Artificial Intelligence (AI) Programme for the commodity sector. Through this scheme, mechanisation equipment and machinery are provided as grants to smallholder cooperatives across Malaysia, with a total allocation of RM4 million. As of 15 October 2025, six cooperatives in Sabah have benefited from the scheme, receiving a total of RM444,900 to improve field productivity and operational efficiency.
Chan urged all smallholders to take full advantage of the various government incentives and assistance programmes available. He expressed confidence that, with continued collaboration among all stakeholders, the productivity and income levels of Sabah’s smallholders will continue to grow, contributing significantly to rural development and economic prosperity in the state.