174 Johor smallholders get RM5.92m replanting aid amid MSPO push
14/06/2026 (TV Sarawak), Batu Pahat - A total of 174 oil palm smallholders in Johor have benefited from the Oil Palm Smallholder Replanting Financing Incentive Scheme (TSPKS 2.0), with RM5.92 million in financing approved for replanting projects covering 422.8 hectares as of March this year.
The initiative is part of broader efforts by the Ministry of Plantation and Commodities (KPK), together with the Malaysian Palm Oil Board (MPOB) and the Malaysian Sustainable Palm Oil (MSPO) Council, to enhance the productivity, competitiveness and sustainability of smallholders in the state.
Johor currently has the highest number of private oil palm smallholders in Malaysia, with 62,897 smallholders managing a total planted area of 150,190 hectares.
Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad said strengthening the smallholder sector remains a key government priority to ensure the nation’s oil palm industry remains competitive, sustainable and capable of contributing to economic growth.
“Smallholders are the backbone of the nation’s oil palm industry. Therefore, efforts to increase productivity, expand Malaysian Sustainable Palm Oil (MSPO) certification, and strengthen access to financing and markets must continue to be intensified to ensure they derive greater benefits from the industry’s value chain,” she said while officiating the MSPO Strengthening Programme for Oil Palm Smallholders in the Batu Pahat district at Sri Medan today.
The TSPKS 2.0 initiative aims to assist smallholders in replanting ageing and less productive oil palm trees, enabling them to improve yields and increase income.
Noraini said MPOB, through its network of 49 Palm Oil Extension Services (TUNAS) offices nationwide, continues to play a vital role in helping smallholders adopt good agricultural practices, enhance farm productivity and comply with sustainability standards.
In Johor alone, 43 Sustainable Palm Oil Clusters (SPOCs) have been established to expand participation in MSPO certification and strengthen the position of Malaysian palm oil in global markets, where sustainability requirements are becoming increasingly important.
MPOB and the MSPO Council are also strengthening collaboration to widen smallholder participation in MSPO certification, particularly in Johor, as international markets continue to place greater emphasis on sustainably certified products.
To further support smallholders, MPOB has introduced development programmes such as the “30 Tonnes Club” and the Sustainable Palm Oil Growers’ Cooperative (KPSM), aimed at improving productivity, strengthening economic resilience and expanding market access.
Through KPSM, smallholders are encouraged to market fresh fruit bunches directly to palm oil mills through cooperatives, allowing them to obtain more transparent and competitive pricing while strengthening the overall supply chain of the nation’s palm oil industry. – TVS