KUALA LUMPUR (Nov 7): The Rubber Production Incentive (IPG) will remain at RM2.50 per kg, says Deputy Primary Industries Minister Datuk Seri Shamsul Iskandar Mohd Akin.
He said the government does not intend to raise the IPG to RM3 per kg, as doing so would have a significant financial impact on the nation.
“It has gone up by 30 sen from RM2.20 per kg previously, so I think it’s a good development for the people especially smallholders,” he said at the question-and-answer session at the Dewan Rakyat here today.
He was replying to a supplementary question from Ahmad Tarmizi Sulaiman (PAS-Sik) on whether the ministry would raise the IPG to RM3 per kg to help rubber smallholders.
In January this year, the government increased the Activation Pricing Level (PHP) from RM2.20 to RM2.50 per kg of scrap rubber.
In another development, Shamsul said his ministry is in the midst of testing an online system for IPG claims by rubber tappers.
He said the system is being implemented in seven states, where about 24,000 smallholders have made online claims.
“We are now conducting a trial run for the online payment of IPG claims. The name has not been finalised but we have given it the provisional name of ‘e-rubber’.
“We give our assurance that if the system proceeds smoothly, we will implement it nationwide,” he said, adding it will have a direct impact on latex entrepreneurs.
Rubber tappers and smallholders currently have to fill in an IPG claim form, which the village chief or rubber middleman then sends to the nearest Malaysian Rubber Board office. — Bernama