Prime Minister Anwar Ibrahim says Malaysia has succeeded in countering Western criticism of palm oil through increased exports, especially to China and India, thanks to its scientific findings.
He said RM63 million has been allocated to intensify the campaign against anti-palm oil efforts and encourage sustainable certification, including by private smallholders.
Anwar, who is also the finance minister, said RM20 million has been provided to support start-up companies in producing mechanisation and automation products in partnership with the Malaysian Palm Oil Board (MPOB) and major oil palm companies.
This is to reduce dependence on foreign workers and encourage local innovation.
“The government is also safeguarding the fate of smallholders who toil and sweat to earn a living on the farms with an allocation of almost RM120 million,” Bernama reported him as saying when tabling Budget 2026 in the Dewan Rakyat.
This includes supporting part of the cost of replanting oil palm for smallholders to replace ageing trees, encouraging smallholders to produce rubber and redevelop abandoned private rubber plantations, and supplying smallholders with 1.1 million quality cocoa seedlings, including training assistance from industry players.
This also aims to reduce the burden on pepper smallholders caused by the increasing cost of fertilisers and pesticides, and support kenaf smallholders in increasing kenaf yields as one of the new sources of growth for agricommodities.
Anwar also said the Malaysian Rubber Board will develop a centre of excellence for research to ensure the industry’s future sustainability, with an allocation of RM600 million.
He said the board will also implement a latex production incentive programme as well as the activation of abandoned rubber plantations.
