Rubber Incentive Scheme Allocates Rm522.35 Mln, Benefiting 235,414 Smallholders As Of Oct 2024 – KPK

KUALA LUMPUR, Dec 4 (Bernama) -- The Ministry of Plantation and Commodities (KPK) announced that the Rubber Production Incentive (IPG) has allocated RM522.35 million to smallholders since the programme’s launch in 2015, up to October 2024.

Minister Datuk Seri Johari Abdul Ghani said the programme has benefited 235,414 smallholders during the same period.

"The government introduced the IPG to safeguard the welfare of smallholders, especially when rubber prices fall, ensuring their income remains at a set level through this incentive.

"From Jan 1, 2024, the activation pricing level (PHP) will rise to RM3.00 per kilogram, with an allocation ceiling of RM400 million," he added.

Johari was responding to Senator Musodak Ahmad's query about the ministry's efforts to ensure the sustainability of rubber plantations, given the industry's slower development compared to palm plantations.

He noted that sustainability efforts were also supported by the Abandoned Rubber Areas Consolidation Programme, aimed at utilising 420,000 hectares of unproductive land nationwide.

The programme, implemented in stages, collaborates with agencies like the Malaysian Rubber Board (MRB), Risda, Felda, Felcra Bhd, and cooperatives, using a cluster approach to enhance management efficiency.

"This initiative also offers opportunities for younger generations to engage in the rubber sector, providing permanent employment and a more attractive income," Johari added.

-- BERNAMA