Director General's Message

Selamat Sejahtera and Salam 1 Malaysia.

Time flies without us realising and we have to say goodbye to 2014 and welcome 2015. Various activities and programmes were carried out and among the challenges that we face is the declining rubber prices which have declined approximately 29.5% for SMR 20 in 2014. This had an impact on rubber smallholders’ income. The government is very concerned and during the 2015 Budget on October 10 2014 announced an initial allocation of RM100 million for the Rubber Production Incentive (IPG).

This incentive will be activated when the average price of SMR 20 FOB is at or lower than RM4.60 per kg starting from January 2015. This mechanism is expected to be operated as self-funding in the future through the collection of funds when the previous average monthly price is or more than RM8.25 per kilogram.

During the 2015 Budget presentation on 10th October 2014, the government announced an early allocation of RM100 million for the IPG. The implementation will involve giving a number of production incentives which include:

  1. giving IPG in the current month according to the average rubber price SMR 20 FOB of the previous month,
  2. in the Peninsula, the IPG will be managed by the Malaysian Rubber Board (MRB), in Sabah by the Sabah Rubber Industry Board (LIGS) while in Sarawak by the Sarawak Agricultural Department (JPS) and MRB, and
  3. smallholders can make claims at any of the MRB regional offices in the Peninsula and the JPS in Sarawak, by presenting the official sales receipt and the Rubber Smallholders Transaction Authorisation Permit (PAT-G). In Sabah’s case, LIGS will use the smallholders registration mechanism.

MRB officers have been on a roadshow to issue PAT-G to all smallholders and as of 31 January 2015, we have registered 137,194 smallholders in Peninsular Malaysia. The registration exercise will be ongoing to ensure all rubber smallholders are issued with the PAT-G to facilitate them in their sales transaction when they sell their rubber.

Director General
Malaysian Rubber Board

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