Southeast Asian governments lend support to rubber smallholders

KUALA LUMPUR, Malaysia—Several Southeast Asian governments are launching support programs to boost the livelihoods and income of natural rubber smallholders.

Malaysia, for one, is encouraging rubber farmers to convert from producing scrap and crepe rubber to latex, the Association of Natural Rubber Producing Countries (ANRPC) reported in its latest monthly report July 21. This step, it said, could minimize import-dependency, estimated to be worth about $658 million per year.

Together with industry stakeholders, the Malaysian government is evaluating the rubber growers' business model for this transition, the association said.

Rubber smallholders, meanwhile, have been urged to apply for monsoon season aid from the Rubber Industry Smallholders Development Authority valued at about $175 per smallholder.

The $56 million financial aid is expected to benefit a total of 318,750 rubber smallholders, according to ANRPC.

Furthermore, the Kuala Lumpur government activated the Rubber Production Incentive in June, the Malaysian Rubber Board announced. The incentive kicks in when the average monthly price of rubber is below the $0.59/kg level.

In Thailand, meanwhile, nine state-owned financial institutions have committed to granting loans worth $58 million (THB 2 billion) to assist rubber farmers and rubber processing companies.

The objective, ANRPC said, is to enhance the well-being of rubber farmers and ensure that rubber product manufacturers comply with the principles of the "bio-circular-green economy."

These loans, it said, will provide support to all stakeholders in the rubber industry, fostering improved business prospects and the exploration of new export markets.

On a different front, ANRPC added, the Philippines' rubber research institute is developing strategies to control the spread of Pestalotiopsis leaf fall diseases.

The institute is "forging collaborations" to tackle the disease while aiming to increase rubber output.

The center is also strengthening growers' focus on sustainable practices and innovation to "propel the country'as rubber industry moving forward."