Three Crepe Rubber Processing Centres Set For Construction In Q3 2025

KUALA LUMPUR, Nov 11 (Bernama) -- The construction of three Crepe Rubber Processing Centres (PPGK) is expected to begin in the third quarter of 2025, according to the Ministry of Plantation and Commodities (KPK).

The ministry said that with the three PPGKs, the National Rubber Industry Transformation Programme (TARGET) will benefit between 450 and 600 smallholder rubber farmers who supply scrap rubber every month.

“Currently, three operators have been identified to manage the PPGKs and are undergoing training and incubation sessions at two PPGKs owned by the Malaysian Rubber Board (LGM), namely the LGM Research Station in Sungai Sari, Kedah, and Bukit Ibam Estate in Pahang.

“These three operators will later be given incentives for PPGK construction with funds from the LGM,” the ministry said in a written response on the Parliament website today.

According to KPK, the crepe rubber produced at the PPGKs will be sold directly to rubber processing factories appointed by LGM at a higher selling price compared to scrap rubber.

This is due to a lower processing discount rate and a more transparent dry rubber content (DRC) value through the use of RRIMETER® technology, with the DRC rate for crepe rubber between 78 and 82 per cent, compared to between 50 and 60 per cent for scrap rubber.

“The profit from the sale of crepe rubber will be shared with the smallholders participating in the cluster supplying scrap rubber for processing at the PPGKs,” it said.

-- BERNAMA