The current focus in Parliament centers on a bold replanting strategy for ageing oil palm trees—especially those held by smallholders. Key highlights include:
RM 1.4 billion allocation over five years (2026–2030) under the 13th Malaysia Plan to rejuvenate oil palm plantations. This includes a RM 100 million matching grant in 2025 to encourage replanting among smallholders .
The parliamentary debates on 13MP began on August 4, 2025, with MPs actively providing feedback. The Minister of Plantation Industries and Commodities, Johari Abdul Ghani, emphasized that the funding aims to sustain Malaysia’s position as the world’s second-largest palm oil producer and uphold export volumes (currently around RM 115 billion) .
The impetus for this initiative stems from a significant shortfall in replanting rates: only 2% annually, well below the 4% government target. This reluctance to replant—driven by aging farmers, inadequate income during tree maturity delays, and insufficient subsidies—is expected to potentially reduce combined palm oil exports from Malaysia and Indonesia by up to 20% by 2030 .
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