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RISDA seminar commits to revive the national rubber industry

The Rubber Industries Smallholders Development Authority (Risda) remains committed to revitalise the rubber production industry for the future of smallholders selling unprocessed rubber.

RISDA seminar commits to revive the national rubber industry

The Rubber Industries Smallholders Development Authority (Risda) remains committed to revitalise the rubber production industry for the future of smallholders selling unprocessed rubber.


Its chairman, Datuk Seri Noraini Ahmad said Malaysia’s rubber industry has played a pivotal role in the nation’s economy, providing employment, and income, and contributing significantly to national revenue.


“The role of the rubber industry in providing job opportunities, income to smallholders, and being able to contribute to the national income has made it one of the main sectors in the Malaysian economy,” she said in the closing ceremony of the three-day 2023 National Rubber Smallholder Direction Seminar yesterday.


Noraini said the country has always defended smallholders in the industries, despite complex challenges such as climate change, global price instability, shifting market demands, and the search for alternative materials as well as a recent deficit in natural rubber production, citing a 19.7% reduction in yield from 2021 to 2022, showing the deterioration in our national rubber industry.


She outlined complex challenges such as The Chairman stressed the need for collaborative efforts to ensure the industry’s resilience, especially the roles of agencies like Risda, the Malaysia Rubber Board (LGM), the Malaysian Rubber Development Corporation (Mardec) and others in advancing the rubber industry.


Based on Rubber Statistics in September 2023, she cited the country’s natural rubber production reached up to 32,773 metric tons with 28,041 metric tons (86%) issued by the smallholders, while the estate sector only contributed 4,732 metric tons (14%).


“These figures emphasise the importance of the smallholders in the rubber industry that is sheltered under all agencies that implement rubber planting,” she adds.


Noraini is also grateful that the government has provided a budget of RM676.1 million for RISDA to launch up to 6 programs; crop area development programs, increasing production, productivity boost of rubber and latex for smallholders, and seasonal monsoon aid.


She disclosed significant allocations from the 2024 Malaysia Madani budget, including substantial funds directed to Risda for implementing essential programs benefiting over 741,000 beneficiaries.


“Besides the allocation to Risda, the government also provides initiatives to increase Incentive rates Rubber Production (IPG) under LGM.


“Activation price for IPG is increased from RM2.70 to RM 3.00 per kilogram with an allowance worth RM 400 million,” she said.


Noraini also expressed her expectation that the resolutions derived from the seminar would be translated into effective and inclusive development policies, specifically tailored for the progress of small rubber farmers.


Read more at The Malaysian Reserve

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