22/08/2025

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FRIDAY | AUG 22, 2025

RM1.4b sought for smallholder replanting of oil palm: Johari KUALA LUMPUR: An allocation of RM1.4 billion under the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0), applied for by the Ministry of Plantation and Commodities for five years, is targeted to cover oil palm replanting across 82,979 hectares. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the allocation forms part of the ministry’s long-term strategy to ensure that Malaysia’s palm oil industry remains sustainable, competitive, and able to deliver optimal returns, particularly to independent smallholders. He said that although the government currently allocates RM100 million annually for the implementation of TSPKS 2.0, covering a target of 5,900ha, the amount channelled to smallholders remains insufficient. “Therefore, the ministry will seek a larger allocation to be distributed to all smallholders, estimated at an average of RM280 million annually. “We have yet to receive approval, but we will make the request,” he said when winding up the debate on the 13th Malaysia Plan or the ministry in the Dewan Rakyat yesterday. Johari stated that the current cost of oil palm replanting is high, ranging from RM18,000 to RM20,000 per ha. “Although the RM1.4 billion over five years can only support part of the replanting needs of independent smallholders, it is an important first step to strengthen ongoing support for them, who represent 14.6% of Malaysia’s total oil palm planted area,” he said. The low replanting rate has led to an increase in the acreage of old palm trees, hampering growth in fresh fruit bunches productivity. The average replanting rate for oil palm recorded only 2% between 2014 and 2024, below the targeted 4% annually, while the area of old palm trees over 25 years old increased from 5.6% (302,004ha) in 2014 to 9.3% (520,067ha) in December 2024. On the proposal to use the windfall profit tax and the reinvestment allowance to strengthen oil palm replanting efforts, Johari said the matter falls under the jurisdiction of the Ministry of Finance (MoF).

Malaysia targets regional franchise hub status by 2030

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

connections. CEO Goh Seow Eng said the Q2 results demonstrated Maxis’ con tinued resilience, underpinned by disciplined operational excellence. “Reflecting our sound funda mentals and strong cashflow, we are declaring an interim dividend of four sen per share,“ he said in a statement yesterday. – Bernama Launched in 2016, FEM has grown into Southeast Asia’s premier showcase of retail and franchise excellence. This year’s event is supported by Nu Vending as Platinum Sponsor, Auntea Jenny (Gold), Xilnex (Silver) and Gintell (Bronze), while U Mobile and Microsoft join as MRCA’s newest corporate patrons, further streng thening industry support for inno vation and digital transformation in the retail and franchise land scape. interest in franchising and entre preneurship across the region, offering a one-stop platform for aspiring business owners to explore opportunities. “Malaysia is more than a test market – it is a launchpad for regional success,” Tay said, highlighting strong international participation, from established franchisors in Taiwan, China and Thailand to emerging brands across Asean. This year also marks Thailand’s first participation, with ten dynamic Thai franchise brands showcased for expansion into Asean and beyond. A key highlight of FEM 2025 was the signing of a memorandum of understanding (MoU) between the Malaysia Retail Chain Association (MRCA) and Malaysia Digital Eco nomy Corporation to accelerate digital adoption among MSMEs. The collaboration will focus on empowering MSMEs to compete globally through joint educational and marketing initiatives, raising awareness of cost-saving digital tools, and fostering innovation by providing access to emerging technologies such as artificial intelligence, Internet of Things and blockchain. Additionally, RHB Bank and MRCA signed two MoUs worth over RM200,000 to promote digital pay ments and enhance business effi ciency. The agreement provides MRCA members with free DuitNow QR Sound Boxes and exclusive packages for an integrated DuitNow QR POS system. The event is endorsed by the Ministry of Tourism, Arts and Cul ture as part of Visit Malaysia Year 2026.

o Government providing policy support, financing and training to boost market access: Minister

KUALA LUMPUR: Malaysia aims to become a regional franchise hub by 2030, targeting the establish ment of 2,010 local franchise outlets abroad and the registration of 4,250 local franchises by the same year. Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick said franchising has long proven to be a pillar of economic strength, with home-grown suc cesses such as Marrybrown, Focus Point and Secret Recipe among more than 1,100 registered brands across multiple sectors. He noted that Malaysia is expanding its trade footprint into new markets, including Europe, the BRICS countries and the Organisation of Islamic Cooperation, in line with the government’s vision under the 13th Malaysia Plan. “My ministry, Kuskop, will continue to strengthen our inter nationalisation strategy by opening pathways to new markets through the country’s economic diplomacy networks,” he said at the opening of Franchise Expo Malaysia 2025 (FEM 2025) yesterday. Ewon emphasised that the government is providing compre hensive policy support, financing, and training to boost market access.

“The Dasar Franchise Negara 2030 serves as the blueprint to transform Malaysia into a regional franchise hub by 2030, with a market value running into tens of billions of ringgit, more local franchises, and the creation of high value jobs,” he said. The policy is built on five key thrusts – strengthening governance, promoting franchising as a private model, building entrepreneurial capacity, improving access to financing, and expanding market opportunities at both the domestic and international levels – all aligned with the nation’s aspiration to nurture globally competitive entrepreneurs. At the same time, Ewon ack nowledged that the retail landscape is rapidly evolving with the rise of e commerce, digital payments and artificial intelligence. “The government continues to work closely with the private sector to help SMEs and franchises embrace digital transformation, from data analytics to omnichannel strategies, ensuring Malaysian fran

chises remain globally competitive,” he said. Despite global uncertainties stemming from geopolitical shifts, climate change, and changing consumer behaviours, he stressed that franchising offers stability, scalability and trust. “For entrepreneurs, it provides a proven business model with esta blished branding and support. For consumers, it guarantees quality and consistency. For the economy, it strengthens SMEs, boosts con sumption and expands export potential,” Ewon said. FEM 2025, now in its eightth edition, is at the Kuala Lumpur Convention Centre until tomorrow with over 400 booths. The event is projected to generate RM120 million in transactions, a 20% increase from last year, and is expected to attract 18,000 visitors. Perbadanan Nasional Bhd is a strategic partner for the expo. FEM 2025 organising chair person Terry Tay said the exhi bition’s growth reflects the rising

He added that the Plantation and Commodities Ministry has submitted the proposal to MoF during the 2025 Budget session, and it is being reviewed. – Bernama Maxis rings up higher Q2 net profit, declares 4 sen dividend

Ewon (fourth, right) officiates the 8th Franchise Expo Malaysia 2025, joined by, from left, Tay, Malaysian Retail Chain Association (MRCA) deputy president Liew Bin, president Ken Phua, immediate past president Sharan Valiram, Perbadanan Nasional chairman Mohamed Rozhan Ghazali and FEM adviser Christine Tan.

KUALA LUMPUR: Maxis Bhd posted a higher net profit of RM398 million for the second quarter ended June 30, 2025 (Q2’25), up 11.8% from RM356 million in the same quarter last year. However, Malaysia’s leading integrated telco said its revenue edged down 0.9% to RM2.56 billion in the quarter under review from

Nevertheless, mobile subscriptions rose 2.8% y-o-y, led by strong post paid growth from enhanced data plans offering greater value. The consumer home segment, which includes fibre broadband and home solar solutions, maintained steady momentum with service revenue up 1.2% y-o-y, in tandem with a 1.4% increase in total home

The company registered service revenue of RM2.2 billion, flat y-o-y due to the ongoing impact of changes in commercial arrangements for its device protection programme, first announced in Q1’25. In consumer mobile, service revenue fell 1.3% y-o-y, affected by the commercial arrangements and lower interconnect rates.

RM2.58 billion previously. Its earnings before interest, tax, depreciation and amortisation re mained healthy, rising 4.6% year-on year (y-o-y) to RM1.09 billion, supported by effective cost management. Maxis said underlying service revenue remained stable, with growth in the consumer postpaid, home and enterprise segments.