AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/10/2019

Policy CategoryProduction

Policy InstrumentProduction sustainability policies

DescriptionOffered soft loans to smallholders for the replacement of senile oil palms with more performant ones, in a bid to promote output growth via productivity improvements rather than land expansion.

NotesMALAYSIA – production sustainability, palm oil (replanting incentive): To promote output growth via productivity improvements rather than land expansion, the Malaysian Government will assist smallholders to replace old palms with more performant ones. As part of its FY 2020 budget, the Government committed to provide MYR 550 million (USD 135 million) in soft loans to some 650 000 smallholder growers to undertake replanting activities. Reportedly, the loans would carry a 2% interest rate, would not require a guarantor, and would include four repayment-free years.