PITAS, 9 September 2025 – The MADANI Government remains committed to strengthening independent oil palm smallholders in Sabah, with over RM2 million allocated in the Pitas District to enhance their participation in the sustainable palm oil supply chain.
Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, officiated the Sustainable Palm Oil Certification Enhancement Programme (MSPO) in Pitas, where he presented a mock cheque amounting to RM713,322 to eight recipients under the Oil Palm Smallholders Replanting Financing Incentive Scheme (TSPKS 2.0), covering a total replanting area of 39.63 hectares.
Chan explained that TSPKS 2.0 is a government-funded matching grant scheme provided through the Malaysian Palm Oil Board (MPOB), specifically for independent smallholders with plantations under 10 hectares.
Under the scheme, repayment only begins in the fifth year after disbursement, giving smallholders more time and flexibility. To date, 707 applications covering 3,034.20 hectares have been approved in Sabah.
In addition to replanting efforts, the government is also implementing the Farm Road Project for Smallholders (JLPK) to improve access to independent oil palm plantations. In Pitas alone, six JLPK projects worth RM1.45 million have been approved.
Chan also highlighted Sabah’s commendable achievements in MSPO certification. As of 31 August 2025, a total of 29,918 smallholders covering 184,564 hectares have been certified, representing 97.62% of the certification rate in the state. Nationally, 209,033 independent smallholders covering 747,012 hectares have received MSPO certification.
The Malaysian Palm Oil Board (MPOB) will continue to offer support and guidance on sustainable palm oil certification to smallholders nationwide through its network of Palm Oil Extension and Advisory Offices (TUNAS).
The postponement of the European Union Deforestation Regulation (EUDR) enforcement until the end of December 2025 provides Malaysia’s palm oil industry with additional time to strengthen compliance with sustainability certification standards for export to EU countries.
To ensure independent smallholders are integrated into the mainstream agrocommodity sector, MPOB has established 49 TUNAS offices nationwide, supported by around 190 TUNAS officers. These offices not only assist with MSPO certification guidance but also provide support on Good Agricultural Practices (GAP) and replanting of ageing or unproductive oil palm trees.
Further information on TSPKS 2.0 can be found on the official MPOB website at www.mpob.gov.my, at MPOB branch offices, or at any Agrobank branch nationwide.
