KUALA LUMPUR, Nov 13 — Malaysia risks losing up to RM7 billion in palm oil export revenue if 520,000 hectares of ageing oil palm trees are not replanted, Plantation and Commodities Minister Datuk Seri Johari Ghani told the Dewan Rakyat today.
He said the national replanting rate for 2024 was only 2 per cent — far below the ideal 4 to 5 per cent annually.
“Looking ahead, the 520,000 hectares in question, if we do not proceed with replanting oil palm trees that have been productive for over 25 years, we stand to lose almost RM7 billion in export earnings.
“This is why, if we are to recognise that palm oil remains a major contributor to our export revenue, we must continue with this replanting programme,” he said in response to a supplementary question from Maran MP Datuk Seri Dr Ismail Abd Muttalib on measures to address the low replanting rate.
Johari said limited government financial support for smallholders has contributed to the slow progress.
For 2024, RM100 million was allocated for replanting, with another RM50 million set aside for 2025, he said.
Of the total, 50 per cent is provided as a grant and 50 per cent as a loan, with the government also subsidising part of the loan interest, he added.
“The high price of palm oil discourages some planters from replanting. They fear losing income during the non-productive period, and often do not set aside funds when prices are good. By the time prices drop, they lack the capital to replant,” he said, adding that replanting costs have also increased sharply.
Previously, the cost ranged from RM10,000 to RM12,000 per hectare, but it has now risen to RM14,000, he said.
