Malaysia plans aid to boost small farm incomes
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Prime Minister Anwar Ibrahim announced that the Malaysian government is taking steps to improve income for smallholder farmers across the country.
He stated that poverty reduction is a priority, followed by support for small businesses and traders. Anwar detailed several initiatives aimed at strengthening the agri-commodity sector through increased productivity, technology, and a more resilient supply chain.
The government will spend RM17.05 million to empower entrepreneurs working with agri-commodities and has established a RM28.57 million fund to address disasters and disease in the sector. To improve access to farms, the government allocated RM100 million to the Smallholder Farm Road Programme. Additionally, the government is offering RM280.03 million through the Smallholder Oil Palm Replanting Financing Incentive Scheme 2.0, hoping to increase long-term productivity.
Anwar also explained that the government is focused on the needs of rubber smallholders, increasing the Rubber Production Incentive from RM2.50 per kg in 2019 to RM3.00 per kg in 2024. Oil palm farmers will benefit from a revised replanting financing approach, combining grants and low-interest loans. The government increased funding for plantation road maintenance to RM50 million in 2026, a rise from RM8 million in 2022.
As of September 2026, approximately 270,000 smallholders, including those growing oil palm, rubber, cocoa, pepper, and kenaf, are receiving RM400 each month through the BUDI agri-commodities programme.
