Ahmad Zahid wants RISDA to establish high-tech rubber depot in Sabah

Borneo Post

18-05-2025

Ahmad Zahid officiating at the state-level Risda's programme for smallholders, at SJK (C) Chung Hwa, Tenom.-Bernama photo
TENOM (May 18): Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has urged the Rubber Industry Smallholders Development Authority (Risda) to establish a High-Tech Rubber Depot in the district to boost the rubber industry and support smallholders in the state.
Ahmad Zahid, who also serves as the Rural and Regional Minister, said Sabah has excellent potential in the rubber industry, adding that the state has the largest rubber plantation area in the country, spanning 202,536 hectares or 25.69 per cent of Malaysia's total rubber cultivation area.
'With the establishment of the depot, Risda should also develop downstream rubber-based products commercially, including conducting research into biofuel derived from scrap rubber, as one kilogramme of coagulated rubber residue can produce five litres of biodiesel known as RISDA Biofuel,' he said.
He said this when delivering his speech at the state-level Risda's programme for smallholders, Pekebun Kecil Makmur, at the SJK (C) Chung Hwa hall here on Sunday.
At the ceremony, Ahmad Zahid announced Kinabatangan MP Datuk Seri Bung Moktar Radin as the honorary national advisor for Risda to ensure the voices of smallholders in the state continue to be heard.
Ahmad Zahid said the government strives to stabilise the rubber industry despite the current low rubber floor price.
'…the floor price for cup lump is set at RM5 per kilogramme, and the current market price has reached RM5.01 per kilogramme, as seen in Tangkak, Johor. We need to transform the rubber industry from a sunset industry (declining) into a sunrise industry (growing) by injecting elements of high technology and innovation,' he added.
He said Malaysia was once among the world's largest natural rubber producers from the 1930s to the 1990s, but due to price issues and labour shortages, it is currently the world's sixth-largest rubber producer.
'Therefore, Risda must find solutions. Develop technologies, train young people using the Technical and Vocational Education and Training (TVET) approach and mobilise them to the sector with new skills, not just as rubber tappers but as value creators,' he said.
He also urged Risda to focus on replanting efforts and using old rubber trees in the furniture manufacturing industry.
'We have the potential to replant 40,000 hectares annually, which could generate up to RM9 billion in rubber timber value if fully utilised. The furniture industry should not be concentrated only in Muar, Johor. I propose that Tenom be developed as Risda's furniture industry hub in Sabah,' he added.-Bernama