Agrobank to fully disburse RM200mil under oil palm smallholder scheme by October
01/09/2026 (New Straits Times), Serdang - Bank Pertanian Malaysia Bhd (Agrobank) aims to fully utilise RM200 million in financing for oil palm smallholders under the TSPKS 2.0 replanting scheme by October this year.
Agrobank has so far approved 4,380 applications worth RM190.99 million, group president and group chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin said.
"We are targeting RM200 million to be fully financed by October this year," he said after the launch of the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) 2.0 system today.
The system, jointly developed by Agrobank and the Malaysian Palm Oil Board (MPOB), is designed to streamline applications and monitoring under the scheme.
It allows MPOB officers to upload information and supporting documents gathered during site visits, including photographs of plantations, for financing assessment.
The system was launched by Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad at the Malaysia Agriculture, Horticulture and Agrotourism Exhibition 2026.
The scheme provides funding comprising a 50 per cent grant and 50 per cent financing to eligible independent oil palm smallholders to replant old or less productive trees.
It is open to smallholders with oil palm holdings of up to 4.047 hectares.
Tengku Ahmad Badli said the government could provide additional funding for the scheme next year, subject to Finance Ministry approval.
He said the same digital platform could be used should additional funding be approved, allowing applications to be monitored throughout the financing process.
"Through this system, if there is additional funding approved in the future, the same application will be used so that the entire financing process can be monitored.
"Every application can be monitored end-to-end, from submission until the financing is disbursed," he said.
TSPKS 2.0 builds on the TSPKS 1.0 programme and is implemented through a collaboration between the Plantation and Commodities Ministry, MPOB and Agrobank.
The initiative is aimed at helping independent smallholders undertake replanting in a more planned manner while improving productivity, farm resilience and long-term income.