Applications to be open for loan scheme for oil palm replanting


Primary Industries Miniser Teresa Kok Suh Sim speaking to reporters in Parliament. – Bernama file photo 

KUALA LUMPUR: Independent smallholders seeking to carry out oil palm replanting activities can apply for two soft loan schemes starting from Aug 15.

Primary Industries Minister Teresa Kok Suh Sim said RM550 million had been allocated under these schemes, namely the Oil Palm Smallholders Replanting (TSPKS) and the Oil Palm Smallholders Agriculture Input (IPPKS) soft loan schemes.

“The ministry has set the loan scope, eligibility, execution, work process, and amount of allocation.

“Smallholders who fulfil the conditions can apply for the schemes, which are intended to ease their financial burden,” she told a press conference at the Parliament building today.

For the TSPKS scheme, the applicants can receive as much as RM10,000 per hectare for a maximum of 6.5 hectares or RM65,000.

“The duration of the scheme is up to 12 years, including the first four years when loan repayment is deferred,” she said.

Meanwhile, IPPKS applicants can get loans of up to RM2,500 per hectare, with a maximum of 6.5 hectares or RM16,250. The scheme has a duration of up to 24 months.

Kok said the TSPKS scheme was expected to benefit between 7,000 and 10,000 smallholders with a combined estimated planted area of 50,000 hectares.

As for the IPPKS scheme, 3,000 to 5,000 smallholders with planted areas totalling 20,000 hectares are forecast to benefit.

In April, Finance Minister Lim Guan Eng announced RM550 million soft loans at two per cent annual interest rate for replanting of oil palm. – Bernama