Kuala lumpur: The Rubber Production Incentive (IPG) has benefited 239,053 smallholders, with total payments amounting to RM523.4 million from its implementation in September 2015 up to June 30, 2025, according to the Ministry of Plantation and Commodities (KPK).

According to BERNAMA News Agency, the IPG aims to ensure the welfare of rubber smallholders by providing a fair income when rubber prices fall below the activation price level. The incentive has been increased to RM3 per kilogramme starting in 2024. In addition, the KPK reported that 221 tonnes of latex have been successfully produced through the Latex Production Incentive Project (IPL+) as of June 2025.

The output from the IPL+ is expected to rise with the ongoing expansion of the programme to three additional locations-Negeri Sembilan, Pahang, and Selangor-in 2025. This initiative is a preliminary step toward reducing dependence on imported latex, as noted in a post on the Parliament’s website on Monday.

The ministry was responding to a question from Datuk Awang Hashim (PN-Pendang) regarding strategic measures to ensure rubber prices remain stable to prevent negative impacts on smallholders’ incomes. KPK highlighted that the Malaysian Rubber Board (LGM) is constructing three centres for the National Rubber Industry Transformation Program (TARGET), anticipated to be operational by the second quarter of 2026.

The TARGET initiative aims to increase the income of small rubber farmers by facilitating their direct involvement in the industry supply chain, eliminating the need for middlemen. This approach shortens the supply chain and enables smallholders to produce value-added crepe rubber with a Dry Rubber Content (DRC) of around 80 per cent, which promises higher returns. If implemented through cooperatives, the profits will also be distributed as dividends to members, as added by the ministry.