Smallholders in Sarawak can now claim RM400 a month in federal cash aid under BUDI Agri-Komoditi, a scheme that ran only in Peninsular Malaysia for its first two years. The money is paid to offset diesel bought at market prices. To receive it, a smallholder has to be on the books of one of the commodity boards that verify eligibility, and for rubber in Sarawak that board is the Sarawak Rubber Industry Board. Second Finance Minister Datuk Seri Amir Hamzah Azizan announced the extension at a diesel subsidy briefing in Kuching on 24 June 2026, according to the state's information unit, UKAS.

What the RM400 is made of

The monthly payment has two parts. There is a base payment of RM200 and an interim top-up of RM200, UKAS reported. The base rate has not changed since the scheme began. When BUDI MADANI opened on 28 May 2024, registered farmers and smallholders in the Peninsula were paid RM200 a month, which the Plantation and Commodities Ministry put at RM2,400 a year.

The interim part grew in steps through 2026 as oil prices rose:

  • March 2026: the Finance Ministry raised the interim cash aid for BUDI Diesel Agri-Komoditi recipients to RM300 for the month, up from RM200, with the extra RM100 paid from 17 March. That week diesel sold at RM3.92 a litre unsubsidised in the Peninsula.
  • April 2026: Economy Minister Akmal Nasrullah Mohd Nasir said the rate would go to RM400 from RM300. He put the reach at more than 200,000 farmers and smallholders and the extra cost at about RM20 million a month.
  • June 2026: the same RM400 was offered to Sabah and Sarawak, as reported by UKAS.

Which boards decide who is eligible

Applications go through the Ministry of Agriculture and Food Security (KPKM), the Ministry of Plantation and Commodities (KPK) or a designated state agency. A board for the relevant crop confirms each applicant before the money is paid monthly by direct transfer, UKAS reported. For the extension the government widened the list of verifying bodies to:

  • the Malaysian Palm Oil Board, for oil palm
  • the Malaysian Rubber Board, together with the Sabah Rubber Industry Board and the Sarawak Rubber Industry Board
  • the Malaysian Pepper Board
  • the Malaysian Cocoa Board
  • the National Kenaf and Tobacco Board

Registration is where the Peninsula scheme ran into trouble. In August 2024 Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said applicants had to be registered with one of the boards first. He counted 210,520 eligible smallholders in the Peninsula and 16,000 approved applications at that point.

The land-size limits used so far

In the Peninsula, the ministry set a ceiling on the land an applicant owns or works alone. The limits were 4.5 hectares or less for oil palm and rubber, and 2.5 hectares or less for pepper, cocoa and kenaf. The June 2026 announcement for Sabah and Sarawak, as UKAS reported it, does not repeat these limits. It says only that the arrangement is the same as in the Peninsula. Smallholders should confirm the Sarawak terms with their board before treating the Peninsula ceilings as the rule.

How many Sarawak growers it could reach

The cited sources give no official count of Sarawak applicants. They do show the size of the groups the scheme is aimed at:

  • Oil palm: Deputy Plantation and Commodities Minister Datuk Seri Huang Tiong Sii put Sarawak's oil palm smallholders at 54,984 in June 2026. Smallholders hold 285,034 hectares of oil palm in the state.
  • Pepper: almost all of Malaysia's pepper is grown by smallholders, on about 8,234 hectares, Huang told the Dewan Rakyat in February 2026.

The scale in the Peninsula gives a sense of what is involved. By 2 March 2026, KPK had approved 151,790 applications from oil palm smallholders alone.

Why diesel aid for smallholders came to Sarawak now

The timing follows the change to Sarawak's diesel subsidy. Until mid-2026, diesel for the public in Sabah and Sarawak was held at RM2.15 a litre. From 1 July 2026, only private vehicles registered under BUDI Diesel could buy at the subsidised RM2.10 a litre. The Finance Ministry estimated there were about 300,000 such vehicles in Sabah, Sarawak and Labuan. About 70,000 commercial and goods vehicles were moved to the SKDS fleet scheme at RM2.15.

On the same date the domestic trade ministry withdrew its March 2026 directive capping sales at 50, 100 and 150 litres and replaced it with a MyKad check at the pump. The smallholder cash aid, UKAS reported, is meant to ease the cost of diesel bought at the floated market price.

For more on farming and commodity news from the state's growing districts, see our coverage of Sarikei, Betong and Kuching.

Sources