KUALA LUMPUR: The Plantations and Commodities Ministry, through the Malaysian Rubber Board (MRB), is currently in discussions with several agencies, including the Rubber Industry Smallholders Development Authority (RISDA), to implement a smallholder consolidation initiative programme.
According to BERNAMA News Agency, the minister, Datuk Seri Johari Abdul Ghani, stated that alongside RISDA, talks are ongoing with the Federal Land Development Authority (FELDA), the Federal Land Rehabilitation and Consolidation Authority (FELCRA), and small rubber growers’ associations across Malaysia. The discussions aim to identify landowners who are unwilling or unable to cultivate their rubber crops, allowing the government to take over and cultivate these lands through a leasing system.
Datuk Seri Johari Abdul Ghani elaborated, “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 rub
ber. 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.” This statement was made during the debate on the Supply Bill 2025 (Budget 2025) in the Dewan Rakyat.
The minister highlighted that this initiative could be facilitated by a collaboration between MRB and RISDA, where MRB would support RISDA in operating a large-scale management system for cultivating rubber on lands that smallholders are no longer working. He noted the historical context of Malaysia’s rubber industry, emphasizing the country’s shift from being the world’s leading rubber producer to a significant importer of rubber.
Datuk Seri Johari Abdul Ghani pointed out the economic implications, stating, “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 plantatio
ns, of which 420,000 hectares are not tapped.” He expressed concern that a considerable amount of money is spent on importing rubber from countries like Thailand, Vietnam, and Ivory Coast, which could instead benefit local smallholders, many of whom are elderly and unable to manage their land due to small plot sizes.
The minister concluded by suggesting that the government might reduce rubber imports from RM6 billion to RM2 billion through the proposed programme, potentially revitalizing the local rubber industry and providing financial benefits to smallholders. The conference on this matter will continue tomorrow.