Kuala lumpur: The minimum price of rubber is targeted to reach RM5 per kilogramme by the end of 2027 as part of efforts to enhance the income and living standards of over 500,000 rubber smallholders across the nation, announced Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Ahmad Zahid, also serving as the Minister of Rural and Regional Development, emphasized that this target poses a challenge for the Rubber Industry Smallholders Development Authority (RISDA) to innovate new strategies ensuring the commodity is traded at elevated prices, despite global supply and demand influences.
According to BERNAMA News Agency, Ahmad Zahid highlighted that efforts to boost rubber prices aim not only to increase smallholders' income but are crucial for maintaining the sector's sustainability and attractiveness to younger generations, encouraging their involvement and continuity in the rubber industry. Addressing the economic theory that rubber prices hinge on global supply and demand, he stressed the need for novel approaches to elevate the dignity, performance, and economic growth of smallholders, viewing this as essential for reflecting the true value of rubber.
The deputy prime minister delivered this speech during the RISDA Central Zone Smallholders Convention's opening ceremony, attended by Deputy Minister of Rural and Regional Development Datuk Rubiah Wang and RISDA chairman Manndzri Nasib. Ahmad Zahid underlined that smallholders contribute about 80 percent of Malaysia's rubber production, highlighting their pivotal role in the industry. He asserted that enhancing smallholders' incomes should not solely rely on higher rubber prices but also on increased productivity through technology adoption, mechanisation, digitalisation, and improved plantation management.
He insisted on the use of high-quality planting materials to boost productivity and noted that Malaysia's natural rubber production has experienced a 9.1 percent growth. Additionally, Ahmad Zahid advocated for smallholders to diversify income sources through alternative crops, agri-food activities, livestock farming, entrepreneurship, and downstream industries, reducing their exclusive dependence on rubber. This approach aims to nurture more entrepreneurs among smallholders capable of managing costs, leveraging technology, and creating value-added products for sustainable income.
This initiative aligns with the vision to increase smallholders' rubber production to one million metric tonnes by 2030. In Negeri Sembilan, 636.47 tonnes of rubber, valued at over RM2.53 million, had been collected by July 16 since January 1 this year, with RISDA recording nationwide collections exceeding 7,095 metric tonnes worth over RM29 million. During the event, Ahmad Zahid also introduced the MyPK RISDA mobile application, a digital platform designed to empower over 500,000 rubber smallholders nationwide by offering faster, easier, and more transparent access to services.