MEDIA RELEASE

For Immediate Release
Chan Foong Hin Rolls Out RM1.52 Million Support Package for Kudat Smallholders and Plantation Infrastructure

KUDAT, 17 July 2025 – Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, has reaffirmed the Government’s commitment to supporting oil palm smallholders in Kudat, Sabah by delivering over RM1.52 million in allocations.

A total of RM795,780 was channelled to 10 smallholders under the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0) to support the replanting of old oil palm trees, covering 44.21 hectares. The initiative helps ease their financial burden while enhancing plantation productivity and ensuring long-term income sustainability.

Simultaneously, RM725,000 was allocated for the construction of two Smallholders’ Plantation Access Road (JLPK) projects, covering a total of 2.3 kilometres, aimed at linking community settlements with independent oil palm plantations in the Kudat District. The projects involved are JLPK Kg. Rasak Darat Tigaman (RM225,000) and JLPK Kg. Suang Pai (RM500,000). These roads are prioritised for areas with active or newly developed plantations to improve transportation of agricultural inputs and harvested crops, ensuring better access to main roads and sales centres.

“From a logistical infrastructure standpoint, the Government, through MPOB, has also implemented assistance under the Smallholders’ Plantation Access Road (JLPK) project. Priority is given to roads that connect actively cultivated or newly developed plantations managed by smallholders. 

“This is to ensure the establishment of improved connectivity for nearby communities, especially in transporting agricultural inputs and delivering harvested crops to main roads and sales centres,” said Chan at the launch of the TSPKS 2.0 Programme in Kudat this morning.

He also called on smallholders to actively update their personal information with the Malaysian Palm Oil Board (MPOB) to ensure timely and accurate delivery of government assistance and incentives.

Meanwhile, Datuk Chan also officiated the groundbreaking ceremony (Majlis Pecah Tanah) for the new KPSM Kota Marudu Weighbridge Centre (Pusat Timbang) in Kampung Garuda, Kota Marudu. This will be the second weighbridge facility owned by Koperasi Pekebun Kecil Sawit Mampan (KPSM) Kota Marudu Berhad.

Licensed by the Ministry of Plantation and Commodities (KPK) on 17 January 2025, the facility is scheduled for completion by September 2025, with operations to commence by October 2025. Once operational, the weighbridge centre is expected to benefit around 300 smallholders in the surrounding area and is designed to handle up to 3,000 metric tonnes (MT) of Fresh Fruit Bunches (FFB) monthly.

The total construction cost of RM1 million, is fully self-financed through KPSM Kota Marudu Berhad’s own business profits. Additionally, the cooperative also owns a RM1 million commercial building and operates an agricultural supply business to support the needs of smallholders in the region.

In line with the Government’s holistic development approach, MPOB continues to strengthen its outreach through advisory services provided by its Oil Palm Extension Advisory Officers (TUNAS) and by actively organising the Mobile Service Counter Programme or Open Day. To date, 29 outreach programmes have been held across Sabah with participation from 1,455 independent smallholders.