The government will continue to assist rubber smallholders affected by price decline and volatility by working together with major rubber-producing countries under the International Tripartite Rubber Council (ITRC) framework, said the Plantation and Commodities Ministry.
“At the international level, Malaysia is cooperating with the world’s major rubber-producing countries under the ITRC framework to stabilise prices through supply management measures and raising natural rubber usage among producing countries.
“The introduction of a rubber price mechanism at the international level, aimed at safeguarding smallholders’ livelihoods, is at the proposal stage. This effort is to enable natural rubber prices to be within a fixed price range to reduce uncertainty over global rubber prices,” she said in the Dewan Rakyat today.
She also explained that rubber prices are influenced by various factors including global supply and demand. Government intervention can only be minimal as Malaysia’s rubber industry is export-oriented and accounts for only 3.3 per cent of global production.
She added that the government, via the Malaysian Rubber Board (LGM), has implemented the National Rubber Industry Transformation Programme (Target) using the rubber grower and plantation operator cooperative concept to raise smallholders’ income by shortening the supply chain involving rubber growers and industry chain.
“This project is expected to raise the value of rubber and provide better income to smallholders.
“Up to August 2023, Target programme participants have passed the incubator phase and moved on to the monitoring stage for the opening process of a rubber collection centre in an appropriate location,” she said.
