MEDIA RELEASE
For Immediate Release

Smallholders’ Plantation Access Road Project boosts independent oil palm smallholders’ socioeconomy

Batu Kurau, 29 January 2026 – The implementation of the Smallholder Farm Road Project (JLPK) is proven to have a direct impact on the socio-economic improvement of independent oil palm smallholders, not only through improved access to plantations but also by stimulating more organised oil palm replanting.

Sungai Terbuang 2 JLPK Project is implemented by the Malaysian Palm Oil Board (MPOB) in collaboration with the Larut Matang and Selama district Irrigation and Drainage Department (JPS), with an allocation amounting to RM247,986 for bridge construction and upgrading works of 800 metres of farm roads, benefiting smallholders and locals.

The Ministry of Plantation and Commodities (KPK), through MPOB in collaboration with Bank Pertanian Malaysia Berhad (Agrobank), provides financial support through the Smallholder Oil Palm Replanting Financing Incentive Scheme  (TSPKS 2.0). This scheme is offered as a matching grant with repayment starting only in the fifth year after approval, thereby easing the financial burden on smallholders.

“The implementation of the JLPK is seen to increase TSPKS 2.0 applications among local smallholders as they are now more confident in carrying out replanting activities with improved access roads that facilitate logistics and transportation,” said MPOB Director General, Datuk Dr. Ahmad Parveez Ghulam Kadir during his speech at the Inauguration Ceremony of the Sungai Terbuang 2 Smallholders’ Plantation Access Road under Santuni MADANI Programme in Batu Kurau, Perak yesterday.

He emphasised that the socio-economic development of smallholders does not depend solely on the market prices of palm oil and fresh fruit bunches (FFB), but is also influenced by production factors such as the use of quality planting materials, fertilisation, Good Agricultural Practices (GAP), pest and disease control, as well as the height of old palm trees which can increase harvesting costs.

“With upgraded smallholders plantation access roads, all agricultural inputs can be managed more efficiently and at a more affordable cost, thereby increasing the productivity and income of smallholders,” he added.

“Through MADANI Budget 2026, the Government announced an additional allocation of RM50 million for the maintenance and development of farm roads nationwide to improve access facilities and ensure smooth farm operations for smallholders.

“As of 30 November 2025, a total of seven projects have been approved in Perak with a total allocation of RM1.7 million.

Committed to the well-being of the local community, MPOB also supported in upgrading the facilities of Masjid Jamek Kampung Yaman Batu 20 through contributions from the Persatuan Kebajikan Kakitangan Islam MPOB (PKKIM) and an allocation from the Perak State Development Office (ICU) involving a total sum of RM120,000.