He said the proposal came from Risda chairman Manndzri Nasib, Bernama reported.

“This is a game-changer and a fresh proposal.

“I have instructed the director-general and secretary-general of the rural and regional development ministry to prepare a working paper for presentation to the Cabinet within the next two months to seek approval,” he said.

Speaking after attending the opening ceremony of a Risda field officers convention in Bangi today, Zahid said the new measure would help safeguard the welfare and well-being of smallholders, who rely on floor prices set annually by the prime minister during the budget speech.

Zahid said the country’s 500,000 smallholders have been the driving force of the rubber industry, contributing 89% of the total rubber production, well beyond the 11% contributed by the plantations.

He said there was a need to raise rubber prices and boost latex production, noting that Malaysia currently imports latex worth RM6 billion annually despite being a major producer.

“We aim to identify markets and develop products based on natural rubber, by working with industry players to reduce reliance on artificial rubber.”

Zahid commended Risda’s achievements, noting its RM70 million profit last year.

Risda was allocated RM440.22 million to implement development programmes under the 2025 budget.