Government Aims to Consolidate Rubber Smallholdings and Reduce Imports
Introduction
The Malaysian government is planning to consolidate rubber smallholdings and reduce imports through a new initiative. The Plantations and Commodities Ministry, through the Malaysian Rubber Board (MRB), is discussing the plan with several agencies, including the Rubber Industry Smallholders Development Authority (RISDA), to identify landowners who are unwilling or unable to cultivate their rubber crops. These landowners will be offered a lease system, allowing the government to cultivate the land and share profits with the landowners.
Objectives of the Consolidation Initiative
The government aims to create a consolidation system for rubber smallholders who are no longer working their land. This will be achieved through a collaboration between MRB and RISDA, with MRB providing support to RISDA to operate the large-scale system. The objective is to identify landowners who are unwilling or unable to cultivate their rubber crops, and offer them a lease system, where the government will employ rubber tappers with fixed salaries to work the land and share the profits with the landowners.
Challenges in the Rubber Industry
Malaysia used to be the world’s number one rubber producer, but today it imports almost 1.1 million tonnes of rubber per year, valued at RM6 billion. The majority of these smallholders are elderly and unable to work the land, which is often small in size. This has led to the government importing rubber from countries like Thailand, Vietnam, and the Ivory Coast, which has resulted in a significant loss of revenue.
Prospects of the Consolidation Initiative
The government believes that this consolidation initiative can help reduce rubber imports from RM6 billion to RM2 billion. This will not only benefit the smallholders but also the country as a whole. The government is committed to supporting the rubber industry and ensuring its future growth and sustainability.
Conclusion
The Malaysian government’s plan to consolidate rubber smallholdings and reduce imports is a significant step towards revitalizing the industry. By working with RISDA and other agencies, the government can identify willing and able landowners, provide training and support, and create a more sustainable and productive rubber industry.
FAQs
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What is the objective of the consolidation initiative?
The objective is to create a consolidation system for rubber smallholders who are no longer working their land, and to reduce rubber imports from RM6 billion to RM2 billion. -
Who is involved in the consolidation initiative?
The Malaysian Rubber Board (MRB), Rubber Industry Smallholders Development Authority (RISDA), Federal Land Development Authority (FELDA), Federal Land Rehabilitation and Consolidation Authority (FELCRA), and small rubber growers’ associations in Malaysia are involved in the initiative. -
How will the government support smallholders?
The government will employ rubber tappers with fixed salaries to work the land and share the profits with the landowners. - What are the challenges facing the rubber industry?
The main challenges facing the rubber industry are the small size of the landholdings, the aging population of smallholders, and the need for training and support.