GOVERNMENT ALLOCATES RM240 MIL TO ASSIST SMALLHOLDERS

TANAH MERAH (Malaysia), Jan 31 (Bernama) -- The Rural and Regional
Development Ministry has allocated RM240 million (US$66.5 million) to assist the
development of rubber and palm oil smallholders throughout the country.

Rubber Industry Smallholders Development Authority (Risda) chairman Abdul
Rahim Tamby Chik said the bulk of the allocation would be used to implement
replanting programmes involving 194,000 hectares that had been identified.

"Apart from catering for development, the funds allocated will also be used
to assist smallholders to replant rubber trees," he told reporters after
launching a Replanting campaign here Saturday.

Abdul Rahim said Kelantan received an initial figure of RM16.5 million
(US$4.6 million) to develop and replant 29,316 hectares of Felda land with
rubber and palm oil.

"For the development of every hectare, smallholders will receive RM7,000
(US$2 million) and the figure may increase from time to time," he said.

He added that apart from northeastern state of Kelantan, areas identified
for the replanting programme would involve 38,823 hectares in east coast state
of Pahang, 14,000 hectares in east coast state of Terengganu, Selangor (11,000
hectares), northern states of Perak and Kedah (24,000 hectares) respectively and
southern state of Johor (16,000 hectares).

Abdul Rahim said developing these areas and replanting rubber or palm oil
was vital to provide a source of income for the people.

"We hope smallholders will come forward and register their land that was
ready for replanting so as to receive the RM7,000 an hectare allocation," he
said.
-- BERNAMA