KUALA LUMPUR: The Plantations and Commodities Ministry, via the Malaysian Rubber Board (MRB), is in discussions with several agencies including the Rubber Industry Smallholders Development Authority (RISDA), about the implementation of the smallholder consolidation initiative programme.
Its minister Datuk Seri Johari Abdul Ghani said other than RISDA, discussions are also underway with the Federal Land Development Authority (FELDA), the Federal Land Rehabilitation and Consolidation Authority (FELCRA), and small rubber growers’ associations in Malaysia.
The discussions are to identify landowners who are unwilling or unable to cultivate their rubber crops so that they can be taken over and cultivated by the government via a lease system.
“What we are planning is for the MRB to discuss with RISDA to become the driving agency to consolidate, create a management company and meet with all the smallholders who no longer want to tap rubber.
“We will discuss taking the smallholders’ land, perhaps by way of leases. We will then employ rubber tappers with a fixed salary to work the land and share the profits with the landowners,“ he said, winding up the debate on the Supply Bill 2025 (Budget 2025) in the Dewan Rakyat today.
He said the plan to create a consolidation system for rubber smallholders no longer working their land can be administered via a collaboration between MRB and RISDA, with MRB providing the support to RISDA to operate this large-scale system.
“We used to be the world’s number one rubber producer, but today we import almost 1.1 million tonnes (of rubber) a year, and the value is about RM6 billion. Whereas we have 1.1 million hectares of rubber plantations, of which 420,000 hectares are not tapped.
“Money goes out to buy rubber from Thailand, Vietnam, and Ivory Coast. This RM6 billion (import value) should be given to smallholders, but most of these smallholders are elderly and unable to work the land. The issue is further exacerbated by the land size, which is small,“ he said.
He said the government may be able to reduce rubber imports from RM6 billion to RM2 billion through this programme.
The conference continues tomorrow.
