RM9.5 Mln In Rubber Production Incentives Distributed To 94,677 Smallholders From Jan-Nov 2025

KUALA LUMPUR, Jan 29 (Bernama) -- A total of 94,677 smallholders benefited from the Rubber Production Incentive (IPG), receiving RM9.50 million in payments between January and November 2025, the Ministry of Plantation and Commodities (KPK) said.

The ministry said the IPG was activated four times in Peninsular Malaysia and nine times each in Sabah and Sarawak in 2025.

“Cumulatively, since its implementation from September 2015 until Nov 30, 2025, the IPG has benefited 253,358 smallholders nationwide with total payments of RM532.76 million,” it said in a written response posted on the Parliament website today.

KPK was replying to Datuk Seri Jalaluddin Alias (BN-Jelebu) regarding the number of smallholders who benefited from the IPG in 2025 and whether the government considers the RM3 per kilogramme (kg) activation rate still appropriate.

Regarding whether the IPG Activation Price Threshold (PHP) of RM3 per kg remains relevant, the ministry said the rate is based on government finances.

It said the IPG PHP has been reviewed and increased five times since the IPG was introduced, with the current rate of RM3 per kg effective from January 2024.

“However, the ministry is reviewing and assessing improvements to the IPG implementation mechanism to make it more inclusive and targeted.

“This includes proposals to introduce productivity-based incentives and to increase the IPG rate for latex production, to sustainably boost productivity, national rubber output, and smallholders’ incomes,” KPK said.

-- BERNAMA