Increasing Natural Rubber Production Can Reduce Import Dependency, Saving RM4 Bln

KUALA LUMPUR, Nov 13 (Bernama) -- The government is of the view that increasing natural rubber production to at least 400,000 tonnes of cuplump and 20,000 tonnes of latex will directly reduce dependence on imports, with savings estimated at RM4 billion.

The Ministry of Plantation and Commodities (MPC) said in a reply posted on the parliament website today that efforts to increase natural rubber production to meet the needs of the domestic industry will restore the competitiveness of the country’s rubber industry.

The ministry also said that through the Malaysian Rubber Board (MRB), it has implemented several strategic measures to ensure sustainable and stable rubber prices, as well as income support measures to ensure the survival of tappers.

"Among them, the Rubber Production Incentive (IPG) which aims to guarantee the welfare of smallholders when prices fall below the Activation Price Level (APL).

"The National Rubber Industry Transformation Program (TARGET) is implemented to increase the income of smallholders through their direct involvement in selling cuplump directly to the Crip Rubber Processing Centre," it said.

Other strategies include the Latex Production Incentive (IPL+), a pilot project being implemented in Kedah, Perak, Selangor and Negeri Sembilan aimed at encouraging latex production.

The ministry said that through the various incentives provided, smallholders who switch to latex production also enjoy a more stable and higher income compared to cuplump production.

The MPC said this in reply to a question from Datuk Adnan Abu Hassan (BN-Kuala Pilah) who asked about the ministry's strategy in ensuring sustainable rubber prices through the implementation of a floor price mechanism, strengthening the downstream market and income support measures to ensure the survival of tappers and the competitiveness of the country's rubber industry.

-- BERNAMA