Business : Budget 2027: Rubber Production Incentive Hike To Help Cover Smallholders' Costs -- PKPKM
KUALA LUMPUR, Oct 11 (Bernama) -- The increase in the Rubber Production Incentive (IPG) to RM3.30 per kilogramme (kg) in the tabling of Budget 2027 is expected to help cover part of production costs and provide additional income support for smallholders.
The Malaysian government has announced a 30% increase in the Rubber Production Incentive (IPG) to RM3.30 per kilogramme in the 2027 Budget, aiming to offset the costs faced by small rubber farmers. PKPKM President, Adzmi Hassan, highlighted that this decision is crucial as smallholders grapple with market price uncertainty and higher input costs.
The IPG hike reflects the government's concern for small rubber farmers' welfare, especially amid rising expenses. Prime Minister Anwar Ibrahim confirmed the IPG stands at RM3 per kg, marking the third increase since 2022. PKPKM hopes the government will provide 100% assistance under the Smallholder Oil Palm Replanting Financing Incentive Scheme and expedite the distribution process.
The association also urges the government to reconsider the minimum land ownership requirement of 0.5 hectares for government aid, allowing assistance for smallholders owning less than 0.5 hectares but actively growing plantations.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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