KUALA LUMPUR: The Rubber Production Incentive (IPG) has provided financial support to 239,053 smallholders, with total payouts reaching RM523.4 million from September 2015 to June 2025, the Ministry of Plantation and Commodities (KPK) confirmed.
The incentive, designed to stabilise smallholder incomes when rubber prices drop below a set threshold, was raised to RM3 per kilogramme in 2024.
KPK also noted that 221 tonnes of latex have been produced under the Latex Production Incentive Project (IPL+) as of June 2025.
“This figure is projected to grow as the programme expands to Negeri Sembilan, Pahang, and Selangor in 2025,“ the ministry stated on the Parliament’s website.
“This effort also reduces reliance on imported latex.”
The update followed a query from Datuk Awang Hashim (PN-Pendang) on measures to stabilise rubber prices and protect smallholder earnings.
KPK further revealed that the Malaysian Rubber Board (LGM) is building three centres under the National Rubber Industry Transformation Program (TARGET), set to open by mid-2026.
TARGET aims to integrate smallholders into the supply chain, eliminating middlemen.
“It streamlines production and allows farmers to process higher-value crepe rubber with 80% Dry Rubber Content (DRC),“ KPK explained. “Cooperative participation also ensures profit-sharing among members.”
