A total of 239,053 smallholders have received RM523.4 million in payments under the Rubber Production Incentive (IPG) scheme since its introduction in September 2015, the Ministry of Plantation and Commodities (KPK) confirmed. The scheme, designed to ensure a fair income for rubber smallholders when prices dip below the threshold, was increased to RM3 per kilogramme starting in 2024.
The Malaysian Rubber Board (LGM) is also constructing three processing centres under the National Rubber Industry Transformation Programme (TARGET), expected to begin operations by the second quarter of 2026. According to the ministry, TARGET is intended to boost smallholder income by involving them directly in the supply chain and cutting out middlemen.
“It shortens the supply chain and enables smallholders to produce value-added crepe rubber with a Dry Rubber Content (DRC) of around 80%, which provides higher returns,” said the ministry. “If implemented through cooperatives, the profits are also distributed as dividends to members.”
KPK was responding to a question from Pendang MP Datuk Awang Hashim on strategic steps taken to protect smallholders from falling rubber prices. The reply was posted on Parliament’s website on Monday.
Meanwhile, the Latex Production Incentive Project (IPL+) has seen 221 tonnes of latex produced as of June 2025. The ministry said this figure is expected to increase following programme expansions this year to Negeri Sembilan, Pahang and Selangor.
“This initiative is also an initial step toward reducing dependence on imported latex,” KPK added, underscoring its ongoing efforts to build a resilient and self-sufficient rubber sector.
Source: businesstoday