Participants of the Commercial Replanting Scheme (TSK) are expected to receive a total of RM175 million in dividends from the Rubber Industries Smallholders Authority (Risda) this year.

NONE Rural and Regional Development Minister Mohd Shafie Apdal ( left ) said the scheme's 23,892 participants in 2011 received a total of RM163.6 million in dividends, and Risda remains committed to ensuring the participants' dividends continue to grow.

"If the crude palm oil price remains at the RM3,200 per metric tonne level, and the rubber price at RM11.00 a kilogram, the expected increase in dividends is not impossible," he told reporters after a luncheon at Risda Holdings Sdn Bhd today in Kuala Lumpur.

He said the group's gross income this year is also expected to rise to RM1.2 billion, up 10 percent compared to last year, with profit beforetax estimated at RM40 million.

"Last year, the group's gross income was RM900 million with a pre-tax profit of RM33.2 million, and we believe this year's target can be achieved if productivity is raised," he said.

Mohd Shafie said to this end, his ministry will enhance technical training, estate management, skills and entrepreneurship development as well as technical advice for smallholders.

He said the target this year is to raise smallholders' annual yield per hectare from 1,388 kilogram to 1,600 kilogram for rubber, and from 17 metric tonnes to 18 metric tonnes for palm oil.

"Despite the world economy facing huge challenges, global demand for rubber is steady, and rubber is one of the commodities with a stable price, but even if the price goes down it is not drastic," he said.

Meanwhile, he said a new training centre will be set up in Titi Tinggi, Jalan Padang Besar, Perlis to enhance smallholders' productivity.

"Risda now has four such training centres, one each in Kelantan, Pahang, Perak, and Negri Sembilan, and with the new one in operation we aim to train 1,000 participants at each centre.

"The new centre, to be called the Smallholders Development Institute, is in the planning and discussion stage while the cost is being looked into in detail as we have only just got approval for the site," he said.

- Bernama