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BUSINESS • 09/02/2026 08:48 PM

Agricommodity Sector's GDP Contribution At RM66.1 Bln As Of September 2025

KUALA LUMPUR, Feb 9 (Bernama) -- The agricommodity sector has contributed RM66.1 billion, accounting for 5.2 per cent of the national gross domestic product as of September 2025, said Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad.

She said that from January to November 2025, the agricommodity sector contributed RM180.2 billion, or 12.4 per cent, to the country’s total exports.

In winding up the debate on the Motion of Thanks for the Royal Address on behalf of the ministry in the Dewan Rakyat today, she said that the government is aware of issues currently faced by the sector, such as diseases and price volatility that are affecting incomes, particularly among smallholders.

“In response, the ministry has conducted extensive engagement sessions with stakeholders and is currently undertaking the Mid-Term Review of the National Agro-Commodity Policy 2021–2030,” she said.

Noraini added that the Ministry of Plantation and Commodities (KPK) has also submitted an application to the Ministry of Finance for additional assistance to smallholders in the rubber sector, which has yet to be approved.

Elaborating on the steps taken to address issues faced by the rubber industry, she highlighted that the Malaysian Rubber Board (MRB) had implemented the Pestalotiopsis Leaf Fall Disease (LDP) Control Programme from 2023 to 2025, with an allocation of RM37.98 million, covering 38,492 hectares of severely affected mature rubber areas.

“The Rubber Industry Smallholders Development Authority (RISDA) has also implemented the same programme under the 12th Malaysia Plan (12MP), with RM68.56 million allocated to cover 96,279 hectares of smallholder rubber areas under RISDA,” she added.

The minister noted that aside from the LDP, natural rubber (NR) production has also been affected by factors such as abandoned mature plantations, high production costs and the ageing rubber tapper workforce.

Accordingly, in addition to disease control efforts, the government is implementing a consolidation programme for abandoned rubber plantations to revive domestic NR production.

“Last year, the MRB implemented this programme in collaboration with the Federal Land Development Authority and private estates to rehabilitate 1,000 hectares of abandoned rubber land, with an allocation of RM7 million.

“A total of 6,500 hectares of abandoned rubber areas are targeted for rehabilitation this year, resulting in an estimated rubber production increase of 10,000 metric tonnes,” she said.

Meanwhile, Noraini said that as at Dec 31, 2025, more than 254,000 smallholders had benefited from the Rubber Production Incentive (IPG), with total payments exceeding RM534 million, adding that the government has allocated RM171 million annually for 2025 and 2026 for the IPG.

-- BERNAMA

 

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