KUALA LUMPUR (Oct 23): Exporters dealing in palm oil and palm-based products should contribute to the oil palm replanting fund to support oil palm smallholders, said Member of Parliament from Jelebu Datuk Seri Jalaluddin Alias.

According to him, in 2022, total exports of palm oil and other palm-based products reached 3.78 million tonnes, with earnings amounting to RM19.77 billion. For palm-based products, the figures were 22.75 million tonnes and RM118.12 billion in earnings, totaling RM137.89 billion in export earnings.

"If these companies could contribute 0.001% of their earnings, we could gather RM137 million. I believe this is a win-win situation for the government, the private sector, as well as smallholders. We must recognise that smallholders are the ones who work hard in the palm oil industry, while the private sector engages in billion-dollar businesses," said Jalaluddin during the debate on Budget 2024 in the Dewan Rakyat on Monday.

Prime Minister Datuk Seri Anwar Ibrahim, while presenting Budget 2024, announced that the government would allocate RM100 million in incentives for the oil palm replanting programme to address potential productivity issues in fresh fruit bunch production. These incentives would be provided in the form of grants and loans to 7,000 private oil palm smallholders.

While appreciating the government's move to provide incentives for the oil palm replanting program, Jalaluddin urged the government to specify the allocation method that will be adopted.

"Nowadays, the cost of replanting oil palm stands at RM20,000 to RM25,000 per hectare, meaning RM100 million would only be sufficient for replanting 4,000 hectares. Thus, I urge the relevant authorities to review the allocation method to benefit as many smallholders as possible," he added.

He also suggested that the government provide grants to smallholders with fewer than three hectares for replanting, while offering loans to those who own more than three hectares of oil palm for replanting.