The government has significantly increased financial assistance for rubber smallholders under the Rubber Replanting Programme in the 13th Malaysia Plan (13MP), in a move aimed at easing rising plantation costs and boosting long-term incomes.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said aid rates in Peninsular Malaysia have been raised to RM20,000 per hectare from RM13,710, while Sabah will see an increase to RM23,000 per hectare from RM14,955. Sarawak’s revised rate, announced earlier, is also set at RM23,000 per hectare.
The enhanced assistance, rolled out this year via five instalments, is designed to reduce upfront financial pressure on smallholders and support more structured plantation development.
The move comes amid rising agricultural input costs and global economic uncertainty, which have made replanting increasingly challenging for small-scale growers.
Ahmad Zahid said the initiative is expected to benefit about 33,000 smallholders, with a replanting target of 50,000 hectares, or roughly 10,000 hectares annually.
Beyond immediate cost relief, he added that the programme is aimed at strengthening long-term income prospects, with smallholder households projected to earn around RM4,700 per month from improved rubber yields and related economic activities.
