Sarawak's Rubber Industry Transformation Opens New Chapter In State's Commodity Sector
SIBU, Oct 21 (Bernama) -- The transformation of Sarawak's rubber industry through community and corporate collaboration will open a new chapter in strengthening the state's commodity sector, said Sarawak's Minister for Food Industry, Commodities and Regional Development, Datuk Seri Dr Stephen Rundi Utom.
He said the initiative, led by the Sarawak Rubber Industry Board (SARIB), aims to increase productivity, restore abandoned rubber estates and introduce the use of modern technology to make the rubber industry more sustainable and competitive.
“Transforming the rubber industry is not an easy task, but it needs to be implemented to strengthen the sustainability and contribution of the rubber industry in Sarawak,” he said during the opening ceremony of the Sarawak Rubber Industry Transformation Project and Strengthening the Nanga Skuau Community Rubber Project in Selangau near here today.
According to Rundi, Sarawak currently has rubber planted area of 161,000 hectares owned by 98,643 smallholders, with an annual production potential of 161,000 tonnes worth RM483 million if fully managed and tapped.
As of September 2025, 25,000 tonnes of rubber had been traded in Sarawak with a sales value of RM75 million, compared to 20,000 tonnes the previous year, showing an encouraging increase.
Rundi said SARIB was implementing two main strategies to strengthen the state's rubber industry, namely the Existing Rubber Estate Rehabilitation Programme and the Consolidation of Abandoned Rubber Estates.
Under the Existing Rubber Estate Rehabilitation Programme, 1,000 hectares will be rehabilitated from 2025 to 2026 with an allocation of RM4 million involving the use of the latest agronomic technologies such as organic fertilisers, vitamins and soil conditioners.
For the Consolidation of Abandoned Rubber Estates, an area of 50,000 hectares is targeted to be consolidated through the Corporate-Community-Public Partnership (CCPP) concept which is expected to produce 7,500 tonnes of rubber per month to meet the needs of three factories in Sarawak.
This initiative will also generate returns in the form of rental, dividends, CSR assistance, as well as job opportunities with a salary of around RM2,000 per month for the local community.
He also emphasised the collaboration between SARIB, KMJ Nusantara Sdn Bhd and the Skuau Agropolitan Committee (AJAS) in introducing the Intelligent Tapping System (ITS) developed by KMJ Nusantara.
Technology that allows tapping activities to be carried out at any time without depending on the weather like traditional practices will increase yields and make it easier for farmers,” he said.
The project will be expanded to other areas such as the Ulu Awik and Sibuti Agropolitans, which are being pursued together with the private sector through the CCPP concept.
SARIB is also collaborating with the Malaysian Rubber Board (MRB) to adopt the Malaysian Sustainable Natural Rubber (MSNR) standard to ensure Sarawak rubber products comply with global market requirements such as the European Union Anti-Deforestation Regulation (EUDR).
SARIB will also introduce the RRIMNiaga digital transaction system to facilitate buying and selling and the distribution of assistance such as Monsoon Season Assistance and Rubber Production Incentive (IPG) to smallholders.
Rundi said rubber trees are not only valuable in terms of latex production, but also have high potential in the furniture industry and mushroom cultivation.
“Demand for rubber wood, especially from China and Europe, is increasing and SARIB together with STIDC are developing a rubber wood-based furniture industry to add value to this commodity,” he added.
-- BERNAMA