Palm | Kelapa Sawit

KUALA LUMPUR, Oct 29 (Reuters) - The Malaysian government's new replanting scheme will target 365,000 hectares of oil palms older than 25 years as the world's No.2 palm oil producer tries to lift flagging output, a top industry official said on Friday.

Industry regulator the Malaysian Palm Oil Board's (MPOB) new chairman, Shahrir Samad, said the scheme would take two to three years to complete and the government had pledged 297 million Malaysian ringgit ($95.56 million) under the 2011 budget.

The scheme is the latest inItiative to boost yields in Malaysia, which has fallen behind top producer Indonesia in terms of output. An earlier industry-funded scheme to replant 200,000 hectares in 2008 in a bid to boost slumping prices was almost completed this year.