The Malaysian Ministry of Plantation and Commodities has reaffirmed its commitment to supporting smallholder rubber producers affected by price declines and volatility by strengthening international cooperation with other major producing countries under the International Tripartite Rubber Council (ITRC) framework.
Malaysia’s Efforts to Support Smallholders
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According to Deputy Minister Siti Aminah Aching, the government is deeply concerned about the low and unstable prices that have impacted small producers:
“At the international level, Malaysia is working closely with other major rubber-producing nations through the ITRC to stabilize prices by managing supply and increasing domestic use of natural rubber among member countries. We are also proposing the creation of an international rubber pricing mechanism to safeguard smallholders’ livelihoods. This initiative aims to promote greater price stability in the natural rubber market,” she said.
She noted that rubber prices are influenced by various global factors, including supply and demand dynamics, and that government intervention can only be limited, as Malaysia’s rubber sector is export-oriented, accounting for just 3.3% of total global production.
The TARGET Program: Empowering Smallholders
Through the Malaysian Rubber Board (MRB), the government has implemented the National Rubber Industry Transformation Program (TARGET) — a partnership model between rubber growers and plantation operatorsaimed at increasing smallholders’ income by shortening supply chains and improving operational efficiency.
The project is expected to enhance value creation and boost earnings for participating smallholders.
As of August 2023, TARGET participants have successfully progressed beyond the initial stage and are now in the monitoring phase of establishing rubber collection centers at selected sites.
Developing a Digital Trading Platform for Sustainable Natural Rubber
The Malaysian Rubber Board (MRB) has also entered into a technical partnership with Agridence Rubber Pte Ltd, a Singapore-based technology company, to build a digital trading platform for sustainable natural rubber (MSNR).
The collaboration aims to develop a comprehensive traceability and trading system, streamlining the industry’s transition toward regulatory compliance and sustainability, with the goal of delivering Malaysian Sustainable Natural Rubber (MSNR) to global stakeholders.
According to a joint statement, this partnership marks an important milestone in the integration of digital traceability systems across Malaysia’s rubber industry — a key step toward greater transparency, accountability, and sustainability.
The pilot project, launched on October 2, 2023, represents a new era of collaborative innovation, enabling data sharing and system integration between producers, traders, and manufacturers.
“Agridence and MRB will jointly establish a robust framework for seamless data sharing and integration, including traceability data covering every stage of rubber production, distribution, and processing. The integrated data will connect to the Agridence Rubber Platform, where actual trading transactions occur between Malaysian producers and international buyers,” the statement said.
Accelerating Supply Chain Digitization
MRB also confirmed that it is actively digitizing the domestic rubber supply chain through initiatives such as:
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PAT-G (Rubber Transaction Authority License) for smallholders;
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RRIMniaga App for dealers;
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e-RP (Electronic Rubber Processor) for processing facilities;
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e-RM (Electronic Rubber Manufacturer) for manufacturers.
This digital ecosystem enables end-to-end traceability and aligns with the broader MSNR sustainability initiative, ensuring Malaysia remains a trusted supplier of sustainable natural rubber to the global market.