Doppa urges priority for Sarawak in RM1.4 bln federal oil palm replanting fund

KUCHING (Aug 10): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for Sarawak to be given priority in the federal government’s RM1.4 billion allocation for oil palm replanting under the 13th Malaysian Plan (13MP).

Doppa president Dr Napolean R Ningkos said Sarawak is the largest contributor to Malaysia’s independent smallholder oil palm sector, with Malaysian Palm Oil Board (MPOB) 2023 data showing 256,738 hectares managed by 46,584 smallholders in the state.

“As the state with the largest oil palm area in Malaysia, it is imperative that Sarawak receives priority in terms of special allocation and targeted efforts from the Ministry of Plantation and Commodities,” he said in a statement yesterday.

His comments came in response to an announcement by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who revealed the federal government’s plan to invest approximately RM1.4 billion in a nationwide oil palm replanting initiative over the next five years, aimed at reinforcing Malaysia’s global position in the palm oil industry.

Napolean welcomed the initiative, describing it as a strategic move to sustain Malaysia’s palm oil industry and address the crucial need to rejuvenate ageing oil palm plantations, especially those managed by independent smallholders in Sarawak.

“With the current replanting rate at just 2 per cent, there is a risk of impacting both local and global market supply chains due to ageing palms and delays in replanting.

“Addressing this issue is crucial to maintaining Malaysia’s competitive edge in the global palm oil market,” he said.

Napolean also urged the ministry to simplify the application process to enable independent smallholders to facilitate replanting efforts immediately.

According to him, over 70 per cent of Sarawak’s independent smallholders are underproducing due to ageing palms.

“The existing process is hindered by slow land status verification, which is required before incentives and soft loans, such as those provided through Agro Bank, can be disbursed,” he explained.

Napolean suggested that the Department of Agriculture Sarawak and MPOB Sarawak could serve as effective channels for deploying replanting scheme incentives. Such collaboration, he said, would significantly expedite implementation.

He noted that the RM1.4 billion allocation could fund the replanting of about 77,000 hectares nationwide – only 9.3 per cent of the total 824,404 hectares of independent smallholder oil palm areas across Malaysia.

Additionally, Doppa suggested that smallholders who proceed with replanting on their own initiative should be rewarded with incentives, subject to MPOB verification, to speed up the process and ensure the funds meet their intended goals.

“By encouraging self-motivated replanting, we can not only accelerate the replanting process but also ensure that government grants achieve their intended objectives without wastage,” he added.