TSPKS 2.0: Clear disparity in approval for titled lands, NCR, says oil palm planters association

KUCHING (March 19): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for an urgent overhaul of the Oil Palm Replanting Incentive Scheme (TSPKS) 2.0, citing a significantly low approval rate for applications involving Native Customary Rights (NCR) land.

Its president Dr Napolean R. Ningkos said only 35 hectares out of 265 hectares applied for by 78 applicants had been approved, representing just 19 per cent.

“This is in stark contrast to the approximately 60 per cent approval rate for formally titled lands, highlighting a clear disparity that must be addressed,” he said in a statement.

Napolean attributed the low approval rate primarily to the lack of formal land ownership documentation and the lengthy verification process for NCR land, which he said continue to pose major obstacles for smallholders.

He warned that such structural challenges could slow down replanting efforts and, in the long run, affect Sarawak’s oil palm productivity.

Sarawak has the largest area of oil palm cultivation by independent smallholders in Malaysia, estimated at about 246,000 hectares.

Given this, Napolean urged the Ministry of Plantation and Commodities to prioritise resolving the issues affecting NCR land applicants.

He also described the current matching grant model under TSPKS 2.0 — offering RM18,000 per hectare in collaboration with Agrobank — as “impractical” for many NCR smallholders due to financing and procedural constraints.

As an alternative, Doppa proposed a direct incentive of RM9,000 per hectare for independent smallholders who undertake replanting on their own, subject to verification by the Malaysian Palm Oil Board (MPOB).

“This approach would simplify access to assistance and help ease the financial burden faced by smallholders, particularly those on NCR land,” he said.

Napolean further stressed that the requirement for formal land documentation as a condition for aid places NCR smallholders at a disadvantage, compounded by the time-consuming and costly verification process.

He noted that smallholders contribute significantly to both the national and Sarawak economies through MPOB cess payments, taxes, and the State Sales Tax (SST).

“As such, it is only fair that both federal and state governments extend the necessary support to smallholders, regardless of land ownership status,” he added.

“Doppa hopes the ministry will seriously consider the proposed reforms to ensure a more inclusive and effective implementation of the replanting incentive scheme,” he said.

The TSPKS 2.0 is a federal initiative aimed at encouraging oil palm smallholders to replant ageing trees in order to improve yield and sustainability.

However, stakeholders have raised concerns that its current structure may not adequately address the unique challenges faced by NCR landowners, particularly in Sarawak where customary land remains prevalent.