As announced in last year’s Budget 2024, the finance ministry (MoF) has raised the IPG activation price level to RM3 per kg with an allocation of RM400 million.

The IPG was introduced by the government to aid rubber smallholders in dealing with the impact of falling rubber prices on their income.

Nevertheless, the IPG assistance did not increase for several years in tandem with the rise in the cost of living.

As a result, the rubber smallholders would only burden themselves if they wanted to increase productivity.

“Indirectly, this aid ensures that the country’s rubber production remains resilient regardless of the changes in the market price,” MoF said in a post on Facebook.

The IPG was implemented in 2015 to reduce the smallholders’ burden when market prices are low, besides encouraging them to continue rubber tapping.