Chan said that restoring and optimising production on 420,000 hectares of undeveloped land could generate approximately 585,000 tonnes of natural rubber annually, reducing imports and curbing the outflow of our currency.

“The programme will be implemented in collaboration with the Malaysian Rubber Board, the Rubber Industry Smallholders Development Authority, Felda, Felcra, state-owned farms, and all stakeholders,” he told the Dewan Rakyat.

Chan was responding to Bakri Jamaluddin (PN-Tangga Batu), who enquired about the ministry’s steps and efforts in managing the neglected and aged rubber land owned by smallholders, covering about 420,000ha nationwide.

To implement this programme, Chan said, the government has allocated RM20 million through the 2025 budget.

“This allocation is aimed at initiating the programme, including the costs of rehabilitating abandoned land, providing basic infrastructure such as access roads and rubber collection centres, supply of tapping equipment, and training for local and foreign workers.

“These funds will also be used for the development of strategic rubber clusters and improvements in logistics systems and storage facilities, with the hope of enhancing productivity and returns for landowners and smallholders,” he said.

Chan said the ministry recognised the current state and position of the rubber sector, which showed a declining trend at the upstream or production level.

“Malaysia is currently the eighth-largest natural rubber producer in the world.

“In 2023, Malaysia imported 1.002 million tonnes of natural rubber valued at RM5.73 billion to meet the needs of the local processing and manufacturing sectors,” Chan said.

He added that Malaysia is a net importer of natural rubber.