Malaysia
MALAYSIAN SUSTAINABLE NATURAL RUBBER (MSNR)
The initiation of Malaysian Sustainable Natural Rubber (MSNR) was driven by the needs of the industry for a sustainable raw rubber material. Malaysian Rubber Board (MRB) as the custodian of the rubber industry in Malaysia is the regulatory body that will ensure that locally produced raw rubber from Malaysian rubber industry is from a sustainable resource, free from deforestation and comply with Malaysian social and environmental regulations.
The principles of MSNR consist of: - 1. No deforestation for rubber cultivation 2. No illegal land utilization for rubber cultivation 3. Environtmental sustainability 4. Social compliance 5. Traceability of supply chain.
MSNR falls under the purview of the Malaysian Rubber Board (Incorporation) Act 1996 (Act 551). Additionally, the due diligence for MSNR will be carried out through enforcement of MRB Act and MRB (Licensing and Permit) Regulations 2014.Each person/organization holding a license/permit to operate in the Malaysian rubber industry will be traceable through our data information systems.
TRACEABILITY SYSTEM DEVELOPED BY MRB​​​​
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Policies to Promote Environmentally Sustainable Practices
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Malaysia has established a robust framework for promoting environmentally sustainable practices in rubber cultivation. The National Forestry Act designates three types of forested land: gazetted permanent reserved forests (PRF), protection forests, and state land. Clearing of PRF for commercial agriculture is prohibited, while long-term plantations may be established within these areas under certain conditions. Although there are no specific restrictions on clearing state and alienated lands for rubber cultivation, an Environmental Impact Assessment (EIA) is required before any forest conversion. Malaysia is committed to maintaining at least 50% forest coverage, currently at about 54%, and is a signatory to the UN Agenda 2030 aiming to halt deforestation.
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In addition to forest preservation, Malaysia employs various policies to encourage sustainable agricultural practices. The Malaysian Pesticide Act regulates pesticide use, while the Good Agricultural Practice (GAP) guidelines promote soil conservation and fertility through methods such as legume cover cropping and mulching. The National Green Technology Policy emphasizes eco-friendly practices in the rubber industry, including efficient wastewater management and the use of renewable resources. Traceability of rubber production is ensured through the Smallholders Card system, and biodiversity is supported by guidelines from the Ministry of National Resources and Environment. Overall, these initiatives reflect Malaysia's commitment to balancing economic growth in the rubber sector with environmental sustainability.
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Policies to Promote Socially Sustainable Practices
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Malaysia has implemented several policies to promote socially sustainable practices in rubber cultivation, aiming to alleviate poverty and enhance the quality of life for smallholders. One significant initiative is the Rubber Production Incentive (IPG), introduced in 2015 with a budget of RM200 million, designed to support smallholders facing low rubber prices. This incentive activates when market prices fall below specified thresholds, encouraging continued production. Additionally, the government has allocated RM6.4 million to smallholder cooperatives to improve supply chain efficiency, allowing better pricing for farmers. A replanting program by RISDA aims to boost productivity by replacing old rubber trees, while the Monsoon Season Aid provides financial support to smallholders during adverse weather conditions.
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To further support social development, the "Rubber For Natives" program encourages indigenous communities to engage in rubber cultivation, providing training and funding to facilitate their agricultural practices. This initiative aligns with the government’s goal of socio-economic development and ensures that marginalized groups are included in national growth efforts. Malaysia's Employment and Labour laws ensure the welfare of workers in the rubber industry, promoting non-discrimination and safety in processing factories through adherence to strict occupational health regulations. Together, these policies reflect Malaysia's commitment to fostering sustainable development within its rubber sector while addressing social equity and economic resilience.