TAWAU: Sabah has become the biggest recipient of allocations for repairing farm roads under the Smallholder Farm Road (JLPK) project, with RM17.06 million channelled out of a total RM20 million provided this year.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said as of Oct 31, a total of 57 JLPK projects had been approved in Sabah, involving an allocation of RM17.06 million, including three farm road projects worth RM2 million in Tawau.
“This assistance is provided to facilitate the logistics and transportation of smallholders’ harvests, as the delivery of tonnes of fresh fruit bunches must reach the mills or collection centres on time.
“If the delivery time exceeds 24 hours, it will cause the Free Fatty Acid (FFA) content to increase, which in turn lowers the quality of the oil and reduces the income of smallholders. That is why such assistance is channelled, taking into account the road conditions in Sabah,” he told reporters after officiating a programme for oil palm smallholders, here, Thursday.
Chan said in line with the Government’s commitment to assisting smallholders, the Government, through Budget 2026, has allocated an additional RM50 million for the maintenance and development of plantation roads nationwide.
He advised all parties to take full advantage of the assistance and incentives provided by the Government so that smallholder palm oil production, particularly in Sabah, can generate higher income.
Meanwhile, Chan said Sabah is among the states receiving the highest allocation under the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS) 2.0, amounting to RM61.56 million involving 796 approved applications covering 3,420.04 hectares.
Of this, Tawau recorded 144 approved applications covering 674.31 hectares with an allocation of RM12.13 million, while Sandakan had 34 approved applications covering 155.76 hectares with an allocation of RM2.8 million.
Chan said the implementation of the scheme demonstrates the Government’s commitment to helping smallholders boost productivity through more efficient and sustainable oil palm replanting.
As of October 15, 2025, Sabah recorded the highest Malaysian Sustainable Palm Oil (MSPO) certification rate in the country, with 30,768 smallholders covering 191,517.96 hectares, representing a 96.09 per cent compliance rate.
In Tawau, 1,600 smallholders covering 15,614.57 hectares have obtained MSPO certification, while in Sandakan, 1,025 smallholders under SPOC S22 (7,384.25 hectares) and 701 smallholders under SPOC S23 (4,678.10 hectares) have also been certified.
“This achievement shows that smallholders in Sabah are increasingly aware of the importance of sustainable and competitive plantation management,” Chan said.
He also expressed hope that the new State Government to be formed after Nov 29 will be aligned with the Federal Government to ensure that all planned allocations and projects for the people can be implemented smoothly without political obstacles.
