Malaysia launches pilot project to boost latex production

Malaysia on Monday launched a latex production incentive (IPL) pilot project to seek to increase production of latex.

Malaysia's Plantations and Commodities Minister Fadillah Yusof said the incentive was designed to help small rubber producers increase their income by switching the production of latex from cup rubber blocks to latex.

He noted in a statement that participants from small rubber farmers will receive several incentives, which will be evaluated based on the productivity of the latex set.

It is understood that rubber smallholders who switch to latex production under the Latex Production Incentive (IPL) programme will receive four incentives: 1, a monthly participation incentive of RM200; 2, will receive a latex production incentive of RM2.00 per kg per month, based on 100% dry rubber content; 3. Receive a monthly bonus of RM100 for one year; (4) Productivity incentives will be awarded based on annual production targets of 1000 to 1499 kg per hectare per year (Category 1) and 1500 kg per hectare per year and above (Category 2).

He said latex processing plants in the pilot project will receive incentives including special permits to collect latex under certain conditions and loans for facilities and equipment.

The one-year pilot project, implemented by the Malaysian Rubber Board (MRB), involves several states, namely Perak, Kedah and Sabah, with an estimated 1,500 participants and three processing plants. In addition to leading the production of natural rubber and sustainable rubber products, the Bureau also prepares the industry to implement compliance at the national level.