Kuala lumpur: 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.

According to BERNAMA News Agency, the Ministry of Plantation and Commodities (MPC) stated in a reply posted on the parliament website that efforts to boost natural rubber production to meet the needs of the domestic industry will restore the competitiveness of the country’s rubber industry. The ministry highlighted that, through the Malaysian Rubber Board (MRB), several strategic measures have been implemented to ensure sustainable and stable rubber prices, alongside income support measures to safeguard the livelihood of tappers.

Among the initiatives introduced is the Rubber Production Incentive (IPG), which aims to guarantee the welfare of smallholders when prices fall below the Activation Price Level (APL). Additionally, the National Rubber Industry Transformation Program (TARGET) is being implemented to increase the income of smallholders by enabling their direct involvement in selling cuplump directly to the Crip Rubber Processing Centre.

Other strategies mentioned include the Latex Production Incentive (IPL+), a pilot project currently being executed in Kedah, Perak, Selangor, and Negeri Sembilan, aimed at encouraging latex production. The ministry noted 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 provided this information in response to a question from Datuk Adnan Abu Hassan (BN-Kuala Pilah), who inquired about the ministry’s strategy for 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.