KUALA LUMPUR (Reuters) -Malaysia’s commodities ministry said on Tuesday it would seek to boost the allocation for palm oil replanting to 1.4 billion ringgit ($331 million) under a new five-year economic plan.
The funds, from 2026 to 2030, will help increase the replanting rate, especially among smallholders, Plantation and Commodities Minister Johari Abdul Ghani told parliament.
This year the government is providing a matching grant with an allocation of 100 million ringgit ($24 million) for smallholders.
Replanting averaged about 2% last year, falling short of the government’s target of 4%, Johari said.
“When replanting is not being taken care of, it will affect our future exports,” he said, with production also being hit.
($1=4.2250 ringgit)
(Reporting by Ashley Tang; Editing by Clarence Fernandez)
