SANDAKAN: A total of 30,768 smallholder oil palm planters in Sabah have obtained Malaysian Sustainable Palm Oil (MSPO) certification as of Oct 15.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin, said this covers an area of 191,517.96 hectares, representing a 96.09 per cent certification rate in the State.
For Sandakan specifically, a total of 1,025 smallholders under the Sustainable Palm Growers Cluster (SPOC) S22 have been certified covering 7,384.24 hectares, while 701 smallholders under SPOC S23 have been certified for 4,678.09 hectares.
The government has allocated RM100 million for the TSPKS 2.0 Financing Incentive Scheme to support oil palm replanting works. This matching grant scheme for independent smallholders is fully managed by Agrobank.
To date, a total of 796 applications have been approved under the TSPKS 2.0 scheme in Sabah, covering 3,420.04 hectares with a total allocation of RM61, 560,637.20.
In Sandakan alone, a total of 34 applications have been approved covering 155.76 hectares, involving RM2, 803,633.20 in funding.
Chan said this during a media briefing after attending the Sandakan Smallholder Palm Oil Welfare Programme organised by the Malaysian Palm Oil Board (MPOB) at the Dewan Serbaguna Gum-Gum, Batu 16, on Wednesday.
The programme aimed to disseminate information about MSPO certification and government incentives available to smallholders.
The MSPO implementation not only enhances global market acceptance but also benefits smallholders through Good Agricultural Practices (GAP) management, environmental care and improved yield quality, ultimately leading to increased income.
Chan said that through the 2026 Madani Budget tabled by Prime Minister Datuk Seri Anwar Ibrahim, the government has allocated RM120 million for 2026 to support and empower smallholder commodity farmers nationwide, including those cultivating oil palm, rubber, cocoa, pepper and kenaf.
This timely allocation will help cover replanting costs for old, less productive palm trees, ensuring the sustainability and continuity of the nation’s palm oil sector.
Meanwhile, Sabah MPOB Coordinator Amran Arifin noted that the agency continues its commitment to developing the nation’s palm oil industry.
He pointed out the importance of the MSPO certification in ensuring quality palm oil exports and encouraged SPOC cluster participation, with Sabah currently having 29 SPOCs.
