The Malaysian Government has agreed to raise the activation price of the Rubber Production Incentive (RPI) scheme to compensate tappers’ losses during the decline in global rubber price.
Datuk Dr Zairossani Mohd Nor, Director General of Malaysia Rubber Board, said the activation price for the incentive will be raised to RM2.50 per kg, from the current RM2.20 per kg, starting January 2019.
Since September 2015, the government has distributed about RM102 million to smallholders registered under the incentive scheme.
Zairossani said the scheme was initiated to ensure the continuity of Malaysia’s rubber production, which is currently below the national capacity.
Malaysia now has about 41 factories processing the standard Malaysian rubber (SMR) and their capacity of production is about 1.5 million tonnes per year.