BANGI: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said today that he will present a proposal at the Cabinet meeting, within two months, seeking approval for an initiative to designate the Rubber Industry Smallholders Development Authority (RISDA) as the sole buyer of rubber from smallholders.
He explained that the proposal to make RISDA the exclusive buyer of smallholder rubber came from RISDA chairman Manndzri Nasib.
“This is a game-changer and a fresh proposal. I have instructed the director-general and secretary-general of the Ministry of Rural and Regional Development (KKDW), to prepare a working paper for presentation to the Cabinet meeting within the next two months, for approval,” he said.
Ahmad Zahid said this to the media after attending the opening ceremony of the 2025 RISDA Field Officers Convention, today, where Manndzri was also present.
He emphasised that this new measure is inevitable, to safeguard the welfare and well-being of smallholders, who rely on floor prices set annually by the Prime Minister during the Budget speech.
Earlier, in his speech, Ahmad Zahid highlighted that over 500,000 smallholders have been the driving force of the rubber industry, contributing 89 per cent of the country’s total rubber production - well beyond the 11 per cent contributed by the plantation sector.
He also emphasised the need to raise rubber prices and boost latex production, noting that Malaysia currently imports latex worth RM6 billion annually, despite being a major producer.
“Collaboration could be key to enhancing rubber prices and latex production. We aim to identify markets and develop products based on natural rubber, by working together with industry players to reduce reliance on artificial rubber,” he said.
He underscored the importance of empowering the 2.7 million-strong smallholder community, describing them not only as land inheritors but as inheritors of the industry itself.
“They must be nurtured through skills training, modern management practices, TVET, and economic education. The goal is to cultivate a generation of visionary and competitive smallholders,” he added.
Meanwhile, Ahmad Zahid commended RISDA’s achievements, noting its RM70 million profit last year, but emphasised the need for the agency to achieve even greater milestones.
“We must amplify business capabilities, explore new opportunities, and expand into broader markets to sustain long-term success,” he said.
For the entrepreneurial cluster, Ahmad Zahid said that he wants to see more entrepreneurs emerge and for smallholders to be further empowered. He urged RISDA to enhance its guidance programmes and widen access to financing to boost the competitiveness of smallholders across various sectors.
“In this digital age, radical transformation is no longer optional - it is essential. We must leverage technology to enhance efficiency, transparency, and responsiveness in service delivery.
“On this note, I have instructed KKDW, its agencies, and the Regional Development Authority (LKW) to strengthen dashboards, data banks, and digital mapping systems. This will enable real-time assessments of every development project, ensuring that decisions are made based on precise and up-to-date information,“ he added.
The RISDA Field Officers Convention 2025, held here, from Jan 21 to 24, brought together 1,000 field officers from across the country. These officers play a crucial role in implementing the service delivery system for rubber smallholders under RISDA’s supervision.
With the theme ‘Memperkasa Pegawai Lapangan RISDA Untuk Meningkatkan Kesejahteraan Sosioekonomi Pekebun Kecil’ (Empowering RISDA Field Officers to Improve the Socio-economic Well-being of Smallholders), the convention aligns with the KKDW’s Desa MADANI aspirations.
The convention focuses on reskilling and upskilling RISDA field officers through various initiatives, including a keynote address by the ministry’s secretary-general, a message from the RISDA director-general, a management and field development forum, group discussions, and a plenary session. These activities aim to translate discussions into actionable key performance indicators (KPIs) to address challenges faced by the rubber smallholder community.
Under the 2025 Budget, RISDA has been allocated RM440.22 million to implement development programmes, underscoring the government’s trust and commitment to improving the living standards of rural communities, particularly rubber smallholders.
