Govt in talks to ease oil palm land conversion for smallholders

BANTING: The Plantation and Commodities Ministry is in talks with state governments to help smallholder farmers convert the land status of their plots from rubber to palm oil cultivation, enabling them to qualify for Malaysian Sustainable Palm Oil (MSPO) certification.

Minister Datuk Seri Johari Abdul Ghani said one of the key prerequisites for MSPO certification, particularly in meeting European Union Deforestation Regulation standards, is having a legitimate land title that reflects the actual crop being cultivated.

"If the land is planted with palm oil, the title must indicate it as palm oil land," he told reporters at the launch of SD Guthrie Bhd's B30 biodiesel pilot project in Carey Island here today.

"However, in many cases, smallholders are farming palm oil on land officially titled for rubber, which complicates the certification process," he said.

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He noted that the cost of converting land titles, including premiums and penalties, can be prohibitively high, often between RM30,000 and RM40,000, making it unaffordable for many smallholders.

"This is the challenge. Some cannot afford the premium, and when penalties for late conversion are included, the burden becomes even heavier," Johari added.


The ministry estimates that around 50,000 smallholders may be affected by these mismatched titles.

To address this, Johari said a comprehensive list of affected farmers is being compiled, with the aim of negotiating financial solutions or possible penalty waivers with state governments.