Prime Minister, Datuk Seri Ismail Sabri Yaakob said the government has allocated RM600 million to smallholders this year compared to the RM508 million allocated last year.

The government also approved a total of RM191 million in Monsoon Assistance (BMT) involving a total of 232,319 RISDA smallholders. In addition, a total of 24,237 smallholders from Pahang will receive Monsoon Assistance (BMT) starting next November.

"All smallholders will receive assistance amounting to RM600 which will be distributed in stages, beginning with RM300 next month and RM300 this December," he said.

The assistance will then be increased to RM800, compared to the current amount of RM600, if Ismail Sabri returns to lead the government after the 15th General Election (GE15).

This allocation showcases that the government is deeply concerned on the development of the rubber commodity sector involving smallholders.

During the Budget 2023 rollout early last month, the Prime Minister said that an allocation of RM2.6 billion will be given to the commodity sector such as RISDA, as one of the main agencies that regulate commodity activities.

Among the initiatives planned to be implemented in advancing the country's commodity sector include:

  • RM315 million for the Smallholder Rubber Plantation Development Program to replace old rubber trees.

  • New Revenue Redevelopment Program to encourage smallholders to explore new incomes other than rubber.

  • Increasing the income of rubber smallholders through the Latex Production Incentive introduced together with the TARGET program to improve the supply chain of rubber raw materials through cooperatives.

  • Agricultural Protection Scheme would also be introduced to protect agricultural operators from any out-of-control risks, such as weather, disease and pests.

  • For the indigenous people in Bera, the Orang Asli Plantation Replanting Project will be implemented as well as replanting rubber and palm oil.

Commenting further, Ismail Sabri said that rubber is the only commodity that is supported with a production incentive such as the Rubber Production Incentive (IPG) — which comes into effect once the market price of rubber goes below RM2.50 per kg.

Rubber Replanting Program

He explained that the Rubber Replanting Program which has a target area of ​​20,000 hectares, has now exceeded an area of ​​more than 10,000 hectares, through the participation of 7,180 smallholders.

RISDA also received applications to replant rubber covering an area of ​​18,524 hectares from 12,381 smallholders nationwide.

He added that a total of RM1.15 million had been channeled to the Bera Parliament, for replanting activities covering an area of ​​150 hectares, 15.43km of agricultural road assistance and four units of marketing infrastructure as well as agricultural infrastructure.

Rubber Productivity Incentive Scheme (SIPG)

In order to increase smallholders income, the government had initiated the Rubber Productivity Incentive Scheme (SIPG), involving an allocation of RM31.1 million. This is aimed at achieving production of 1,800kg per hectare annually.

He said RISDA also succeeded in producing 23,522 RISDA-mentored entrepreneurs nationwide through assistance amounting to RM56.3 million.

“It is my great hope that all smallholders will continue to take advantage of the opportunities provided through the rural development Ministry and RISDA as RISDA provides various initiatives to diversify sources of income and human capital development for the entire smallholder family," he said.

Also present were Rural Development Minister, Datuk Seri Mahdzir Khalid and RISDA Chairman, Datuk Seri Mohd Salim bin Mohd Sharif.