LUNDU: The Malaysian Palm Oil Board (MPOB) is looking at an increase in production in the next eight years.

It is estimated that RM100 billion worth of crude palm oil (CPO) can be achieve based on the current programs taken by the government.

Malaysia now produces 17.5 million tonnes of CPO a year, second to Indonesia which produces 21 million tonnes.

Plantation Industry and Commodities Minister Tan Sri Bernard Dompok said in making sure Malaysia leads in production, more land is needed with small scale farmers playing a role.

"Both Sabah and Sarawak has many lands which have the potential for palm oil. By giving them the assistance needed, they can earn more from their land," said Dompok after meeting with oil palm smallholders here yesterday.

In giving the smallholders a chance in the industry, MPOB is giving out subsidies to new farmers. They receive RM7,000 per hectare as well as seedlings and fertilisers.

Dompok said the subsidy is also for the replanting of new trees to replace those which are already 25 years old.

"There are 300,000 small scale farmers with 650,000 hectares of land nationwide who received this assistance and the number is growing," he said.

There are 4.85 million hectares of land being used for palm oil plantation and 40 per cent of this belongs to smallholders.

"Previously, small scale farmers are producing only at two to three tonnes per hectare, but with this assistance they will be able to produce four tonnes per hectare," he said.

The assistance provided by MPOB is one of the National Key Economic Area where other necessity assistance will be provided to the smallholders.