KUALA LUMPUR – The government has agreed to increase the threshold value of the palm oil’s windfall profit levy from RM2,500 to RM3,000 for Peninsular Malaysia, and from RM3,000 to RM3,500 for Sabah and Sarawak.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz in tabling Budget 2022 today said the newly adjusted levy rate for Sabah and Sarawak stands at 3% on par with Peninsular Malaysia.
Previously, the levy rate for Sabah and Sarawak stood at 1.5%.
Earlier, Tengku Zafrul said the government is committed to providing opportunities for youth, graduates and low-income groups to generate income through agriculture.
As such, the government, he said, proposes to rent abandoned and unused Malay reserve land and the federal government’s land for agriculture purposes, which will also ensure that the land will be managed properly.
A total of RM1.25 billion, he said, will be allocated for a financing programme for farmers by Agrobank and Bank Negara Malaysia, and will be channelled through AgroFood Facility (RM500 million) and Agrofood Financing Fund (RM200 million), among others.
Another RM1.5 billion, he announced, was also allocated for subsidies and incentives on seeds, fertilisers, and price and production of paddy, which include RM40 million for subsidy on hill paddy’s (padi huma) fertilisers.
Meanwhile, the fisheries industry was given a RM150 million allocation for incentives on fisheries catch.
Commodity development
Budget 2022 has allocated RM2.5 billion to empower rural communities through commodity development programmes.
From this, Tengku Zafrul said RM1.3 billion will be channelled for recovery and development packages of Felda settlers, RM495 million for Felcra Bhd’s participants and RM699 million for development of small rubber farmers under Rubber Industry Smallholders Development Authority.
“The government will implement the National Rubber Industry Transformation Programme to unite all small farmers, rubber entrepreneurs and small corporations in a bigger consortium to produce crepe rubber,” he said.
The government will also introduce and widen the use of the Rubber Research Institute Malaysia’s hydrobest technology among small farmers.
In addition, a total of RM190 million was allocated for 320,000 small farmers who are affected by the monsoon season, with RM5 million being allocated for insurance protection to all Area Farmers Organisations members under Farmers’ Takaful Protection Scheme Smart Card.
Food security assurance
To ensure food security, Tengku Zafrul said the government has allocated RM120 million for the following:
- Food Security Assurance projects involving different states, including the aquaculture industry and shells (seafood) estate in Johor.
- National Food Supply Assurance programme – prepare logistics facilities and high technology food storage centres.
- Ruminant Livestock Feed Incentive Assistance programme (Program Bantuan Insentif Makanan Ternakan Ruminan) to allow small ruminant farmers to get cheaper feed.
- SME Techno Programme (Program Galakan Usahawan Tekno PKS) to increase yields and food processing through the application of technology benefiting 140 agripreneurs. – The Vibes, October 29, 2021
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