Kuala Lumpur: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced plans to propose to the Cabinet that the Rubber Industry Smallholders Development Authority (RISDA) be designated as the exclusive purchaser of rubber from smallholders. This proposal is expected to be presented within the next two months.
According to BERNAMA News Agency, the idea for RISDA to become the sole buyer was initially suggested by RISDA chairman Manndzri Nasib. Ahmad Zahid instructed key officials from the Ministry of Rural and Regional Development (KKDW) to prepare a comprehensive working paper for the Cabinet's approval. He made these remarks during the opening ceremony of the 2025 RISDA Field Officers Convention, with Manndzri also in attendance.
The Deputy Prime Minister emphasized that this new strategy is crucial for protecting the interests of smallholders, who depend on the floor prices announced annually during the Prime Minister's Budget speech. He noted the significant contribution of smallholders, who account for 89 percent of Malaysia's rubber production, far exceeding the plantation sector's 11 percent.
Ahmad Zahid also addressed the need to boost rubber prices and latex production, citing Malaysia's annual latex imports of RM6 billion despite being a major producer. He highlighted the potential for collaboration with industry players to enhance natural rubber prices and production, aiming to reduce dependence on artificial rubber.
Furthermore, Ahmad Zahid stressed the importance of empowering the 2.7 million smallholders, viewing them as both land and industry inheritors. He advocated for their development through skills training, modern management practices, and economic education to nurture a forward-thinking and competitive generation of smallholders.
He commended RISDA's achievements, including its RM70 million profit last year, but urged the agency to aim for even greater success by expanding business capabilities and exploring new opportunities. Ahmad Zahid also encouraged RISDA to support entrepreneurship among smallholders by enhancing guidance programmes and broadening access to financing.
Highlighting the necessity of digital transformation, Ahmad Zahid instructed KKDW and related agencies to enhance technological infrastructure for better service delivery. This includes strengthening dashboards, data banks, and digital mapping systems to enable real-time assessments of development projects.
The RISDA Field Officers Convention 2025, held from January 21 to 24, brought together 1,000 field officers to focus on reskilling and upskilling initiatives. The convention aligns with KKDW's Desa MADANI aspirations and aims to address the challenges faced by the rubber smallholder community through actionable key performance indicators (KPIs).
Under the 2025 Budget, RISDA received an allocation of RM440.22 million for development programmes, highlighting the government's commitment to improving the socio-economic conditions of rural communities, especially rubber smallholders.