MEDIA STATEMENT
MINISTRY OFFERS TWO INCENTIVES TO THE PALM OIL SECTOR
TO ENSURE THE SUSTAINABILITY OF SMALLHOLDERS'
INCOME SOURCES
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1. The Ministry of Plantation Industries and Commodities (MPIC) is calling on eligible oil palm smallholders nationwide to apply for incentives under the Ministry to help supplement their incomes and grow their businesses.

2. The Ministry recently opened up applications for two incentives. They are the Oil Palm Integrated Farming Scheme (ITa) and the Agro Bank - MPOB Easy Financing Scheme. Under ITa, oil palm planters who plant pineapples are eligible for incentives of RM7,000 per ha, while those who grow bananas, watermelon, corn, and papayas receive RM3,000 per hectare.

3. This incentive aims to encourage farm owners to diversify their sources of income through cash crops and optimise the use of their land. This is in line with the government's policy on expanding oil palm cultivation areas, with a planting limit of not more than 6.5 million hectares. This intermittent planting can also improve the health of the ecosystem and soil fertility, thus increasing the yield of oil palm production. MPIC is confident that this incentive can also boost the production of food resources and stabilize food security in the country.

4. Those interested can get the application forms from any TUNAS MPOB offices nationwide. Application is opened only to those who own 6.5 hectare of oil palm plantations or less.

5. Under the Agro Bank - MPOB Easy Financing Schemes, smallholders can apply for loans to purchase oil palm seeds, fertilisers, pesticides, and insecticides for their plantation. They can apply for loans worth RM2,500 per hectare up to RM16,250, with a repayment period of 24 months at a two percent interest rate. The loan is to give smallholders a leg-up in their business.

6. These incentives and facilities are part of the Ministry’s continuous efforts to uplift the living standards of smallholders as well as to balance the dynamics of flora and fauna to ensure environmental sustainability. The Ministry is committed to continuing to defend the plight of smallholders with operational modernisation offers to ensure the long-term sustainability of income sources.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
10 JUNE 2022