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1. Please be informed that as a result of low rubber prices on the world market at this point, the Federal Government introduced the Rubber Production Incentives (IPG) to address the problem of smallholders throughout the state. The incentives came into force on 1st September 2015 and will be payable if: –

  • 1.1. The average price of SMR 20 in the world markets fall below RM5.20 / kg; or
  • 1.2. The average rubber price for the purchase of cuplumps grade II falls below RM2.00 / kg.
  • 2. Rubber Production Incentives (IPG) is a payment on the differences between fixed rubber price and the average price on current rubber prices. IPG will be paid to smallholders who are registered with LIGS on a monthly basis after taking into account the following examples of price differences according to the following calculation: –

    • Example: Cuplumps Grade II in September 2015
    • Prices are set according to the paragraph 1 (1.2) = RM2.00
    • Less: The average price during the month of September = RM1.75
    • The difference or IPG = RM0.25 or 25 sen
    • 3. With regard to item 2 above, the rate of IPG payment on rubber sold to the Board in the month of September 2015 is as follows: –

      • Rubber type = Rates IPG (RM)
      • Latex = 90.0 cents / kg
      • Unsmoked Sheet Grade I = 31.5 cents / kg
      • Unsmoked Sheet Grade II = 26.5 cents / kg
      • Cuplumps Grade I = 30.0 cents / kg
      • Cuplumps Grade II = 25.0 cents / kg
      • 4. LIGS will announce the IPG in the first week if the sales of rubber in previous month are eligible for incentives.

        5. Please also note that the conditions to get the IPG are as follows: –

        • 5.1. Malaysian;
        • 5.2. Registered with LIGS as owner or tapper and registration shall be listed by name on the identity card;
        • 5.3. Rubber plantation not exceed 100 acres;
        • 5.4. Sell ​​rubber to LIGS.
        • 6. Any concerns regarding the incentive payment, please contact with officer in charge in district office or contact directly to Mr. Mohd. Redzuan Haji Awang telephone 088-212311 or 012-8667704. Application forms can also be obtained from any LIGS office.

          Thank you,

          Sabah Rubber Industry Board

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          Information in this page was last updated on 11 November, 2015.