Rubber Targeted To Hit Minimum Price Of RM5 Per Kilogramme By End-2027 - Ahmad Zahid
SEREMBAN, July 28 (Bernama) -- The minimum price of rubber is targeted to hit RM5 per kilogramme by the end of 2027 as part of efforts to improve the income and standard of living of more than 500,000 rubber smallholders nationwide, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Zahid, who is also the Minister of Rural and Regional Development, said the target presents a challenge for the Rubber Industry Smallholders Development Authority (RISDA) to develop new approaches to ensure the commodity can be traded at higher prices, despite being influenced by global supply and demand factors.
He said efforts to raise rubber prices are not only aimed at increasing the income of smallholders but are also crucial to ensuring the sector remains sustainable and attractive to younger generations, encouraging them to venture into and continue in the rubber industry.
“Many say rubber prices depend on global supply and demand. That is indeed economic theory, but we need to find new approaches so that the dignity, performance and economic growth of our smallholders can be enhanced. We want rubber prices that reflect the true value of the commodity. This is not merely about promoting rubber, but about helping smallholders who are the backbone of the country's rubber production,” he added.
The deputy prime minister said this in his speech at the opening ceremony of the RISDA Central Zone Smallholders Convention here today, which was also attended by Deputy Minister of Rural and Regional Development Datuk Rubiah Wang and RISDA chairman Manndzri Nasib.
Ahmad Zahid said that about 80 per cent of the country's rubber production is contributed by smallholders, underscoring their role as the backbone of Malaysia's rubber industry. He said improving smallholders' incomes should not depend solely on higher rubber prices but must also be supported by increased productivity through the adoption of technology, mechanisation, digitalisation, and more systematic plantation management.
“I urge that smallholders should never be forced to plant low quality seedlings. We want them to use only high-quality planting materials so that productivity can be enhanced,” he said, adding that Malaysia's natural rubber production has so far shown positive growth, increasing by 9.1 per cent.
Ahmad Zahid said smallholders should also be given opportunities to diversify their income sources through other crops, agri-food activities, livestock farming, entrepreneurship, and downstream industries to reduce their dependence on rubber alone. He said the approach is expected to produce more entrepreneurs among smallholders who will not only produce rubber, but also be capable of managing costs, leveraging technology and producing value-added products to ensure more sustainable incomes.
“This initiative is in line with the vision and target of increasing smallholders' rubber production to one million metric tonnes by 2030. In Negeri Sembilan, a total of 636.47 tonnes of rubber worth more than RM2.53 million had been collected as of July 16 since Jan 1 this year. Nationwide, RISDA has recorded collections exceeding 7,095 metric tonnes worth more than RM29 million,” he added.
At the same event, Ahmad Zahid also launched the MyPK RISDA mobile application, a digital platform developed to empower more than 500,000 rubber smallholders nationwide by providing faster, easier and more transparent access to services.
-- BERNAMA