Johari Expects Full Utilisation Of RM100 Mln Palm Oil Replanting Assistance By June

KUALA LUMPUR, Feb 27 (Bernama) -- The Ministry of Plantation and Commodities expects the RM100 million assistance for the palm oil replanting programme to be fully utilised by smallholders by June this year.

Its minister, Datuk Seri Johari Abdul Ghani said that the ministry will request an additional special allocation of RM100 million from the Ministry of Finance if the initial replanting assistance is fully utilised.

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“Some of these smallholders are elderly and are unable to take out full bank loans. Therefore, we will help them with a 50 per cent grant and a 50 per cent finance from the bank (Agrobank),” he said after the “Agarwood: Diamond of The Forest”, book launch, here today. 

Johari said Malaysia only managed to replant 114,000 hectares (ha) or 2.0 per cent of the total planted area in 2024, down from 132,000ha (2.3 per cent) in 2023.

The recommended annual target is between four and five per cent, or approximately 285,000ha per year.

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Speaking about the agarwood industry, the minister expressed his intention to bring together industry players to share information with the Malaysian Timber Industry Board (MTIB), especially in the areas of production and grading of agarwood types.

“Through MTIB, we hope to establish a committee or subcommittee and bring in experts from abroad, if necessary, to provide knowledge on how to improve grading and produce certifications for it.

“This is a natural resource with significant potential, allowing us to enhance and create value for the country,” said Johari.

Agarwood has significant value in the international market, particularly in perfume production, with prices reaching up to US$100,000 (US$1=RM4.425) per kilogramme.

The current market value of the agarwood industry is estimated to be around US$1 billion, he said. 

-- BERNAMA