Budget 2027 raises rubber incentive to RM3.30 per kg
The smallholders’ association also seeks 100 per cent assistance for oil palm replanting and a review of the minimum land requirement for aid.
Smallholders are expected to receive help with some production expenses and additional income support from Budget 2027’s higher Rubber Production Incentive (IPG), according to the National Association of Small Farmers of Malaysia (PKPKM). Its president, Adzmi Hassan, said the RM3.30 per kilogramme (kg) rate would help farmers facing unpredictable market prices and increasing agricultural input costs.
Prime Minister Datuk Seri Anwar Ibrahim said when presenting the budget that the current IPG rate is RM3 per kg. He said this marks the third increase since the rate stood at RM2.50 per kg in 2022.
Adzmi said the incentive helps sustain rubber tapping and encourages smallholders to continue producing. Separately, PKPKM wants the government to consider 100 per cent assistance under the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS), with simpler disbursement arrangements.
He said many smallholders lack the capital needed to remove ageing trees, prepare land, purchase seedlings and inputs, and undertake planting. The association wants assistance paid upfront rather than reimbursed after spending, citing replanting expenses and the loss of income before replacement palms mature and produce.
PKPKM also urged the Ministry of Plantation and Commodities, the Ministry of Rural and Regional Development, and relevant agencies to reconsider the 0.5 hectares minimum land ownership requirement for agri-commodity assistance. Adzmi said eligibility should account for smallholders who cultivate productive plantations on smaller plots.
