IPG Benefits 239,053 Rubber Smallholders, With RM523.4 Mln Total Payout

KUALA LUMPUR, July 22 (Bernama) -- The Rubber Production Incentive (IPG) has benefited 239,053 smallholders, with total payments amounting to RM523.4 million from its implementation in September 2015 up to June 30, 2025, according to the Ministry of Plantation and Commodities (KPK).

The IPG, aimed at ensuring the welfare of rubber smallholders by providing a fair income when rubber prices fall below the activation price level, has been increased to RM3 per kilogramme starting in 2024.

Meanwhile, KPK also reported that 221 tonnes of latex have been successfully produced through the Latex Production Incentive Project (IPL+) as of June 2025.

“This amount is expected to rise with the expansion of the programme to three additional locations -- Negeri Sembilan, Pahang and Selangor -- currently underway in 2025.

“This initiative is also an initial step toward reducing dependence on imported latex,” KPK posted on the Parliament’s website on Monday.

The ministry was responding to Datuk Awang Hashim’s (PN-Pendang) question regarding its strategic measures to ensure rubber prices remain stable and do not decline to levels that would negatively impact the income of smallholders.

KPK highlighted that the Malaysian Rubber Board (LGM) is currently constructing three centres for the National Rubber Industry Transformation Program (TARGET), which are expected to be operational by the second quarter of 2026.

The implementation of TARGET aims to increase the income of small rubber farmers by enabling them to be directly involved in the industry supply chain without relying on middlemen.

“It shortens the supply chain and enables smallholders to produce value-added crepe rubber with a Dry Rubber Content (DRC) of around 80 per cent, which provides higher returns.

“If implemented through cooperatives, the profits are also distributed as dividends to members,” the ministry added.

-- BERNAMA