Sri Medan:The RM200 million Oil Palm Replanting Financing Programme (PTSS) announced under Budget 2027 aims to assist oil palm growers in replanting ageing trees with higher-yielding varieties, alleviating their financial burden.
According to BERNAMA News Agency, Plantations and Commodities Minister Datuk Seri Dr Noraini Ahmad emphasized that replanting involves substantial costs and growers must wait several years before newly planted trees begin producing yields. The PTSS offers borrowers a four-year repayment deferment with an interest rate of two percent, while the government will cover the remaining interest.
The PTSS is designed to replace ageing trees, thereby increasing plantation yields and improving growers' incomes in the long term. Dr Noraini mentioned that the programme complements the RM100 million Oil Palm Smallholder Replanting Programme (TSPKS 2.0), which provides a financing package of 50 percent grant and 50 percent loan to about 4,500 smallholders with plantations up to 10 hectares. Meanwhile, the PTSS targets individuals and companies with holdings between 10 hectares and 40.46 hectares, offering full loan financing.
The PTSS has not yet been officially launched, and further implementation details will be announced later. Dr Noraini, also the Parit Sulong MP, shared that Budget 2027 has doubled the allocation for plantation road repairs to RM100 million, facilitating better management and transport of produce to market.
In the rubber sector, the rubber production incentive (IPG) has been increased to RM3.30 per kilogramme, benefiting over 300,000 smallholders amid price uncertainties. Additionally, RM30 million has been allocated to control crop diseases affecting commodities like oil palm, cocoa, and pepper, while over RM40 million will support the development of high-value products using modern technology.
Furthermore, RM15 million from palm oil industry cess collections will be directed towards environmental conservation, including wildlife habitat protection. At an event, the Sri Medan Area Farmers' Organisation (PPK) distributed RM114,502.85 in business zakat, RM52,360 in management grants to 38 Farmers' Units, and RM8,950 in academic awards to 57 outstanding students in its area.