Sabah rubber sector set for revival
KOTA KINABALU: Sabah's rubber industry is set for a revival, with efforts to transform it from a 'sunset industry' to a 'sunrise sector' with solid plans under the Rural and Regional Development Ministry.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who also heads the ministry, said the initiative spearheaded by the Rubber Industry Smallholders Development Authority (Risda) aims to modernise the industry by establishing high-tech rubber depots, promoting value-added production, and introducing advanced tapping techniques to boost smallholder incomes and secure the sector's long-term viability.
'This is about creating a sustainable future for our smallholders.
'We want to transform the rubber industry into a sunrise sector that can generate high value, create jobs and provide long-term economic stability for Sabah,' he said at the launch of the Pekebun Kecil Makmur programme in Tenom yesterday.
To ensure Sabah's smallholders have a stronger voice at the national level, Ahmad Zahid also announced the appointment of Datuk Seri Bung Moktar Radin as the national honorary adviser for Risda.
Bung, who is also Sabah Umno chief and Kinabatangan MP, will serve as the voice for smallholders, ensuring their concerns are heard and addressed, he said.
Ahmad Zahid noted that Sabah, with the largest rubber plantation area in Malaysia, covering 202,536ha or 25.69% of the country's total, should be a priority in national development plans.
As part of this transformation, he proposed the construction of high-tech rubber depots in Sabah to enhance downstream activities and create new income streams for smallholders.
'These depots should be built in Sabah, and funding should not be a concern as Risda already has the necessary allocations,' he said.
Ahmad Zahid also highlighted the potential of Risda Fuel, a technology that converts 1kg of scrap rubber into five litres of biodiesel.
Successfully tested, he said this innovation could provide smallholders with a valuable new product line.
Ahmad Zahid called for more youth involvement in the rubber sector, urging Risda to modernise production and expand training opportunities through Technical and Vocational Education and Training programmes.
'Young people should be trained, not just as tappers, but as value creators in the rubber industry,' he said.
To further diversify the sector, Ahmad Zahid suggested turning Tenom into a furniture manufacturing hub, leveraging rubberwood from older trees to create high-value products.
He estimated that if 40,000ha of rubber trees were replanted annually, the sector could generate up to RM9bil a year.
At the event, a RM9.97mil allocation for smallholders was announced, to be managed by Keningau Risda.
The funds will cover four key components: the replanting and supply programme (RM8.23mil), entrepreneurship and special programmes (RM1.2mil), the extension programme (RM206,000), and the productivity programme (RM331,000).
This is part of the RM42.23mil set aside for Risda in Sabah under the national budget for 2025, aimed at boosting the overall welfare and economic resilience of smallholders across the state.
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