The Malaysian government will provide RM63.75 million in financial assistance to 318,642 smallholder rubber farmers under the Aidilfitri Special Financial Assistance (BKKA) program, announced Deputy Prime Minister Ahmad Zahid Hamidi.
Direct Support to Smallholders
According to Malaysia’s Ministry of Agriculture, each registered smallholder will receive RM200 in financial support. The funds will be distributed through the Rubber Industry Smallholders Development Authority (RISDA), directly transferred into the farmers’ bank accounts.
Deputy Prime Minister Ahmad Zahid Hamidi shared this information during a meeting with 1,500 local students and orphans in Papar, where he also presented cash aid from the Community Development Department (KEMAS), FELCRA, and the Sabah Rubber Industry Board to 129 students and orphans, totaling RM25,800.
Aiding Rural Rubber Producers
The BKKA initiative is part of the Malaysian government’s broader policy to support rural rubber smallholders, especially during festive seasons, by helping them cope with volatile rubber prices, rising living costs, and limited income stability.
Malaysia’s smallholder sector accounts for a significant share of the country’s rubber output. However, many producers face challenges such as low yields, aging trees, and price fluctuations in the global market. The government’s financial assistance aims to stabilize income and encourage continued participation in the rubber industry.
Government Commitment to Rural Development
Deputy Prime Minister Zahid emphasized that the government remains committed to improving rural livelihoods, particularly among small-scale farmers and vulnerable communities. “This support reflects our appreciation for the contributions of rural producers to Malaysia’s economy,” he said.
The government’s policy includes not only financial aid but also technical support, replanting programs, and training initiatives through RISDA and the Malaysian Rubber Board (MRB), helping farmers increase productivity and adopt sustainable practices.