Guan Eng: RM550m soft loan and RM100m grant for independent oil palm smallholders
New Straits Times (28/04/2019) - KUALA LUMPUR: The government, yesterday, announced RM550 million soft loan at two per cent repayment rate to independent smallholders to replant their unproductive oil palms.
In a statement, Finance Minister Lim Guan Eng in his statement today said the soft loan fund is meant to ease the financial burden of smallholders in carrying out the replanting of the crop.
He explained oil palm smallholders were being given assistance because of the government's concern over the current situation faced by entrepreneurs as a result of the crop’s low commodity prices.
"The provision of soft loans, especially to smallholders for replanting the crop, is in line with the commitment of the Pakatan Harapan government in ensuring the welfare of oil palm planters.
Lim said the extension of financial help to oil palm independent smallholders would ensure all planters are included in the government's drive to facilitating economic growth.
The Finance Minister also announced a RM100 million grant to help independent smallholders to secure the Malaysian Sustainable Palm Oil Certification (MSPO).
Under this policy, he said, the government will fully bear the MSPO certification costs from the existing 70 per cent for oil palm planters who have medium-sized smallholdings of between 40ha and 1,000ha.
Lim also said the government will increase aid for MSPO auditing costs from the current 30 to 50 per cent. This incentive will be reimbursed to the oil palm planter, after he had secured the MSPO certification at his estates.
"This measure to better facilitate MSPO certification among smallholders would help strengthen Malaysia's position as the world's leading sustainable palm producer," he said.