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The Malaysian Palm Oil Association (MPOA) has voiced its strong support for the government's recent allocation of RM100 million aimed at oil palm replanting, crop disease control, and wildlife conservation. MPOA Chief Executive Roslin Azmy Hassan emphasized that this funding must result in tangible advantages for smallholders and provide a robust framework for sustainable palm oil production. He noted that the replanting assistance is particularly crucial for smallholders currently struggling with the twin burdens of aging palm trees and escalating replanting expenses.
Under the plan announced by Prime Minister Datuk Seri Anwar Ibrahim, a hybrid financing scheme will support 4,500 oil palm smallholders, requiring them to repay only 50% of the total financing. While welcoming the move, Hassan pointed out that given the vast scale of the industry, further sustained assistance is necessary. This includes ongoing funding to address devastating crop diseases like Ganoderma. The government has separately earmarked RM30 million to tackle various pests and diseases affecting oil palm, cocoa, and pepper. Furthermore, RM15 million collected from the palm oil industry cess will be dedicated to environmental conservation, specifically protecting the habitats of the Malayan tiger, Bornean elephant, and orangutan.
Despite the positive funding news, the MPOA highlighted significant operational hurdles, including a persistent labor shortage and rising overheads. The national minimum wage is set to rise from RM1,700 to RM2,000 in June next year, which is expected to place additional financial strain on plantation companies. Hassan urged the government to speed up the approval process for foreign labor and introduce stronger incentives for mechanization, particularly for harvesting tasks. He also called on larger plantation firms to assist smallholders with estate management to ensure the entire sector remains productive and globally competitive.
In addition to palm oil support, the government will increase the Rubber Production Incentive for the third time, raising the rate from RM3 to RM3.30 per kg to benefit over 300,000 rubber smallholders. Hassan concluded that the success of these initiatives depends on effective implementation and clear, measurable results from the conservation funds to secure the industry's future sustainability.
Source: The Star