Budget 2021: KPPK receives RM729.39m allocation, up 8.84% from 2020


THE Ministry of Plantation Industries and Commodities (KPPK) has received an increase in allocation of 8.84 per cent to RM729.39 million in Budget 2021 compared with Budget 2020.

Among the benefits that can be channelled through the increase in the allocation is the special incentive that will be given to local workers in the plantation sector to replace foreign workers. These local workers will receive benefits from the government under this special incentive for a period of six months.

“Local workers employed in the plantation sector will receive benefits from the government under this special incentive whereby 60 per cent of the monthly salary is provided, with 40 per cent channelled directly to employers and 20 per cent to those replacing foreign workers.

“The incentive will be given for a period of six months to reduce the high dependence on foreign workers,” Minister Datuk Dr Mohd Khairuddin Aman Razali (picture) said in a press statement.

Describing 2021 as a year full of challenges, he said the ministry will continue to face the challenges of developing the country’s agricultural industry which is a significant contributor to the country’s economy and a catalyst to increase the income of the rural people.

The ministry is confident and believes that it can take on this role to achieve the aspirations of the government and people.

Out of the total RM729.39 million allocation, RM476.66 million will go towards the ministry’s expenditure and RM252.73 million is for the development expenditure under the budget.

This includes a revolving fund for Rubber Production Incentive (IPG) of RM300 million, which is doubled the amount of RM150 million in 2020.

With the increase, the income of 150,000 private rubber smallholders can be stabilised and they will benefit from this incentive.

For the Malaysian Sustainable Palm Oil certification, a total of RM20 million has been allocated to further boost growth and enhance the competitiveness of the country’s palm oil industry.

“I also appreciate the concerns of the four major glove companies in the country, namely Top Glove, Hartalega, Supermax, and Kossan, which have stated their commitment to contribute RM400 million to fight the COVID-19 pandemic as well as willing to cover part of the COVID-19 vaccine cost and equipment expenses.

“I hope more companies will come forward to do the same in implementing their corporate social responsibility,” he said.

Meanwhile, the Malaysian Palm Oil Board (MPOB) also welcomed the Budget 2021 presentation which provides an incentive of RM50 million for the palm oil sector which will be able to increase the sustainability and competitiveness of the palm oil industry.

“The provision of special government incentive to local workers for six months should be utilised by the oil palm plantation sector to overcome the shortage of manpower,” MPOB director-general Dr Ahmad Parveez Ghulam Kadir said.