KUALA LUMPUR, Feb 27 — The Plantation and Commodities Ministry (KPK) currently has no plans to raise the Activation Price Level (PHP) for the Rubber Production Incentive (IPG) beyond RM3 per kg.
This decision takes into account the current rubber prices, which show signs of stability and growth.
“Starting from 2024, the PHP for IPG has been increased to RM3 per kg with an allocation of RM400 million, as announced in Budget 2024.
“Through the implementation of this IPG, smallholders will receive farm-level prices for cup lump rubber (with 50 per cent dry rubber content) based on the PHP of RM3 per kg,” it said in a written response to the Dewan Rakyat, published on the Parliament website today.
KPK was replying to Parit MP Muhammad Ismi Mat Taib, who asked whether it will increase the IPG payment for small-scale rubber tappers nationwide.
The ministry said that for 2025, the IPG implementation will continue with an allocation of RM171 million, which the government has approved.
Additionally, KPK and the Malaysian Rubber Board (MRB) are currently studying improvements to the IPG mechanism.
“The study will focus on providing incentives based on productivity increases and more targeted assistance to ensure maximum effectiveness and benefits for rubber smallholders,” it said.
Meanwhile, KPK, responding to Pendang MP Datuk Awang Hashim, said that MRB is implementing various initiatives to encourage new innovations among rubber tappers, to enhance the productivity of the national rubber industry.
Awang had inquired about the steps being taken to promote new innovations among rubber tappers.
These measures are not only aimed at increasing yields and incomes for tappers but also at supporting the long-term sustainability of the national rubber industry.
“Among these initiatives are the development of new clones, stimulant technology, innovative tapping knives, automated tapping machines, the strengthening of Good Agricultural Practices, bio-fertiliser innovations, as well as training and workshops,” it said.
— Bernama
