In an effort to streamline financial support for oil palm smallholders, the Ministry of Plantation and Commodities is poised to simplify the loan application process from banks in the upcoming Budget 2025.
Minister Datuk Seri Johari Abdul Ghani announced that following the allocation of RM100 million under Budget 2024, designated for the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0), the government is keenly aware of the challenges faced by smallholders in securing bank loans for replanting purposes.
“While the current scheme offers a 50% grant and 50% loan, many smallholders find it daunting to meet the stringent criteria set by banks,” he said.
Johari Told the Dewan Negara today that: “Recognising this barrier, our ministry is exploring avenues to simplify the loan component, particularly to assist smallholders managing trees over 25 years old.”
He said this in reply to a question raised by Senator Datuk Lim Pay Hen regarding incentives for oil palm replanting and outlined plans to enhance accessibility to financial assistance under the TSPKS 2.0 initiative.
