THE SARAWAK STATE GOVERNMENT AND THE FEDERAL
GOVERNMENT JOINTLY ASSISTED THE SMALL HOLDER OF
1. On behalf of the Ministry of Plantation Industries and Commodities (MPIC), I sincerely welcome the provident measures taken by our Sarawak State Government which has helped the smallholders by providing an additional RM0.50/kg on rubber prices, which generate the total Rubber Production Incentive (IPG) to RM1.90/kg.
2. This initiative will certainly help ease the burden and increase the income of the smallholders in Sarawak particularly.
3. This also proves that the government of our Sarawak State and the Federal Government are serious in defending the fate of the people. For public information, the RM2.50/kg cuplump is the Federal Government's IPG activation price.
4. In the Month of March 2020, IPG was activated reason being in Sarawak the average monthly farm price of cuplump was RM1.80/kg, which means that the smallholders would pay IPG of RM0.70 / kg cuplump (RM2.50- RM1.80 = RM0.70 / kg). Since the cuplump contains only 50% of the dry rubber content (DRC), the IPG value is RM1.40/kg of cuplump for 100% DRC.
5. The Sarawak government has assisted smallholders with an additional incentive of RM0.50/ kg, raising the total of IPG to
RM1.90/kg (100% DRC).
6. For example, let say if smallholder produces a 400 kg of cuplumps (50% of DRC) in March, the amount of incentive paid will be RM380 compared to RM280 at regular IPG rates without additional incentives from the Sarawak Government.
7. Without this IPG, smallholders' income from cuplump sales is only RM720. However, with this additional IPG incentives in Sarawak, the smallholders' income would be RM1,100 (RM720 + RM380).
8. Therefore, I urge all rubber smallholders who have yet to sign up for the Rubber Transaction Authority Permit (PAT-G), you may register at the Sarawak State Agriculture Office as well as any Malaysian Rubber Board (LGM) office so they can benefit from IPG and keep them out.
9. For any further inquiries they may also call the LGM Hotline at 1- 800-888-474 (Mon-Fri) 9 am-5pm or 019-602 6001, 019-625 7800 after 5.00 pm.
YB TUAN WILLIE MONGIN
Deputy Minister of Plantation Industries & Commodities
15 April 2020