The Rubber Production Subsidy (IPG) in Sabah and Sarawak, Malaysia has been launched in August

According to a September 2 announcement by the Malaysian Rubber Board (MRB), the Rubber Production Incentive (IPG) for August 2024 has officially been launched, providing support to smallholders in Sabah and Sarawak. This incentive aims to help small-scale rubber farmers in these regions cope with price fluctuations and ensure stable income.

In August, rubber prices in Peninsular Malaysia did not meet the threshold for IPG activation, so the incentive is only being applied in Sabah and Sarawak. The subsidy for cup lump rubber in Sabah is 10 sen per kilogram (50% dry rubber content) and 20 sen per kilogram (100% dry rubber content). In Sarawak, the subsidy is higher, set at 20 sen per kilogram (50% dry rubber content) and 40 sen per kilogram (100% dry rubber content). Additionally, the subsidy for latex (100% dry rubber content) has also been activated, with a rate of 90 sen per kilogram. The latex subsidy is triggered simultaneously with the cup lump subsidy.

Smallholders can claim the IPG based on their rubber production in August 2024, with applications open from September 1 to September 30, 2024. The IPG is triggered when the monthly average farmgate price of cup lump rubber falls to RM3.00 per kilogram or below, a condition that has been in effect since January 2024.

Through this incentive program, the Malaysian government aims to mitigate the impact of price fluctuations on smallholders and promote the stable development of the rubber industry, particularly in key rubber-producing regions like Sabah and Sarawak. MRB’s initiative reflects a strong commitment to the sustainable growth of the rubber sector and provides much-needed support for the livelihoods of smallholders.