PETALING JAYA: Thousands of independent oil palm smallholders in Sarawak are missing out on crucial federal allocations for replanting simply because they do not possess formal land titles.
The Sarawak Dayak Oil Palm Planters Association (DOPPA) President Dr Napolean R Ningkos said farmers cultivating on Native Customary Rights (NCR) land are being sidelined by the federal government's Oil Palm Replanting Incentive Scheme (TSPKS 2.0) due to strict documentation requirements.
According to Napolean, applications for NCR lands have seen a dismal approval rate of just 19%, compared to a 60% approval rate for lands with formal titles.
Out of 265 hectares applied for by 78 NCR applicants, only a mere 35ha were approved.
"The root of this disparity lies in the absence of valid ownership documents and the protracted land verification process for NCR lands," Napolean said on Wednesday (March 18).
He warned that this bureaucratic hurdle creates a significant obstacle that could ultimately stagnate Sarawak's overall oil palm yield.
He said this is a pressing concern as Sarawak currently boasts the largest area of oil palm cultivated by independent smallholders in Malaysia, covering approximately 246,000ha.
Under the current TSPKS 2.0 policy, the government offers a matching grant of RM18,000 per hectare coordinated through AgroBank.
However, Napolean pointed out that this financial model is highly impractical for NCR landowners, as banks typically require formal land titles as proof of ownership or collateral.
To ensure smallholders are not left behind, Napolean is urging the Plantation and Commodities Ministry to immediately overhaul the scheme's approval criteria.
As a solution, Napolean proposed a direct incentive of RM9,000 per hectare to be given to any independent smallholder in Sarawak who successfully completes replanting on their own initiative.
Under this proposed mechanism, the federal funds would only be disbursed after the replanted site is physically verified by the Malaysian Palm Oil Board (MPOB), bypassing the need for bank-approved land titles.
"This reform would provide essential support to NCR smallholders, easing their financial challenges," he said.
Napolean stressed that making formal land documentation a strict prerequisite for federal aid is highly inequitable, especially given the lengthy and costly land verification process in Sarawak.
He reminded the government that despite lacking formal titles, independent smallholders are major economic contributors.
"Given the substantial contributions of smallholders to both the national economy and Sarawak's finances through the MPOB cess, taxes, and the Sarawak Sales Tax, it is only fair that both state and federal governments extend necessary assistance, regardless of land ownership status," he added.
