As such, smallholders in Sabah can begin their claim the IPG until end of this month
by ANIS HAZIM / Pic by BERNAMA
THE Malaysian Rubber Board (MRB) has announced that the Rubber Production Incentive (IPG) for smallholders was deactivated for August 2022 in the peninsula and Sarawak except for Sabah.
In a statement today, MRB said IPG was deactivated in Sabah as the farmgate price for cup lump was recorded at RM2.30 per kg, which falls below the average farmgate price of RM2.50 per kg.
To note, IPG would only be activated if the average monthly price of SMR 20 free on board is at RM6.10 per kg or if the farmgate price for cup lump falls below RM2.50 per kg.
“In August 2022, the average farmgate price for cup lump in Peninsular is RM2.70 per kg, Sabah is RM2.30 per kg and Sarawak is RM2.50 per kg.
“Therefore, IPG for cup lump and latex are not active for August 2022 in Peninsula and Sarawak. As such, no payments (for peninsula and Sarawak) were made for the month,” it said.
Meanwhile, MRB said the IPG for latex will only be activated when the IPG for cup lump is activated.
“The IPG for latex is fixed at 90 sen per kg of 100% dry rubber content (DRC) latex,” it noted.
In August 2022, smallholders in Sabah will receive 20 sen per kg for 50% DRC and 40 sen per kg for 100% DRC.
MRB said the smallholders in Sabah can start claiming the IPG for August 2022 until end of the month.
Separately, the Malaysian Rubber Council (MRC) said the total exports of rubber products in the first half of 2022 (1H22) were RM15.63 billion from RM39.83 billion in 1H21.
Meanwhile, the total export of rubber in 2021 was RM4.56 billion and with an increase of 1.01% in 2022, this totalled the numbers to RM4.61 billion.
“The latex products (non-gloves) show a positive expansion of 35.5% in the 1H22 amounting to RM1.23 billion compared to RM910 million in the 1H21, and these are separated by-products such as in catheters, foam products, condoms and rubber toys,” it said.
Foam products, mainly latex mattresses, recorded the highest increase at 182.4% in 1H22 at RM202.5 million from RM71.7 million in 1H21.
“As for tyre products, there is room for Malaysian exports to grow, as it has recorded an increase of 6% for 1H22 at RM883.2 million compared to RM832.8 million in 2021,” it noted.
The top three export destinations for tyres in 1H22 was the US with 14.4% increase to RM403.3 million, followed by Brazil with 36.9% (RM104.7 million) and Thailand with 25% (RM44.6 million).
Moving forward, MRC CEO Nor Hizwan Ahmad said the council is now focusing on new investments, technological advances and greener products to grow the country’s exports.
“The tyre industry would come from technological advancement, environment-friendly production processes, usage and also the treatment of end-of-life tyres,” he added.
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