Government to study SST impact on rubber industry, says Johari Ghani

KUALA LUMPUR: The government is in the midst of gathering detailed feedback from industry players regarding the implementation of the five per cent sales and service tax (SST) on the domestic rubber ecosystem.

Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani said the relevant agencies have been instructed to carry out stakeholder engagements to gather insights from all segments of the industry.

Johari said the move is necessary to ensure that the impact of the tax is comprehensively assessed before any further action is taken.

"I am currently gathering information from industry players. Once we have it, we will assess the impact and I will bring it to the attention of the honourable Prime Minister," he told reporters at the launch of Industry Linkage Fund 2.0 (ILF 2.0) here today.

The Malaysian Rubber Council (MRC) launched the ILF 2.0, which is a strategic initiative to enhance Malaysia's rubber industry through research and development (R&D) and industry-academia collaboration. 

In his speech, Johari said the ILF 2.0 fund can serve as a catalyst to bring research outcomes to market, connect the industry with intellectual resources, and produce solutions capable of transforming the structure of the rubber industry.

He said this new version is more targeted and strategic, focusing on the development of high-value rubber products, sustainable production practices, and aggressive pre-commercialisation efforts. 

"The fund aims to address a common bottleneck in the innovation ecosystem —the gap between invention and commercialisation. 

"This combination represents a precise and progressive strategy to ensure that the nation's rubber industry not only remains relevant but continues to excel in the dynamic global economic landscape," he added.

Building on the success of earlier initiatives, the Industry Linkage Fund (ILF) and Global Funding for Rubber Innovation (GFRI) — ILF 2.0 takes a more targeted and impactful approach. 

The ILF 2.0 provides partial grants of up to RM300,000 per project, with a 70:30 funding ratio for small and medium enterprises (SMEs) and 50:50 for large companies.

The fund is open to rubber product companies registered in Malaysia. These companies are strongly encouraged to collaborate with local or international research institutions.

Funded projects must demonstrate market viability, product value enhancement, or process improvements that can contribute to higher profit margins and industry competitiveness.

Courtesy From: New Straits Times