RM9.5mil Rubber Incentives Paid To Nearly 95,000 Smallholders In 2025

A total of 94,677 rubber smallholders received RM9.5 million under the Rubber Production Incentive (IPG) between January and November 2025, according to the Ministry of Plantation and Commodities (KPK).

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

Since its introduction in September 2015 up to Nov 30, 2025, the incentive scheme has benefited 253,358 smallholders nationwide, with total payouts amounting to RM532.76 million.

KPK was responding to a parliamentary question from Datuk Seri Jalaluddin Alias (BN-Jelebu) on the number of beneficiaries in 2025 and the suitability of the current activation price threshold of RM3 per kilogramme (kg).

On the threshold, the ministry said the RM3 per kg rate is determined based on the government’s financial capacity. It noted that the IPG activation price has been reviewed and raised five times since the scheme was introduced, with the current rate coming into effect in January 2024.

The ministry added that it is reviewing and assessing potential improvements to the IPG to make it more inclusive and targeted. Proposed enhancements include productivity-based incentives and a higher IPG rate for latex production, aimed at sustainably improving productivity, national rubber output and smallholders’ incomes.

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