Malaysia Moves to Revive Idle Rubber Land, Cut Costly Imports

KUALA LUMPUR: The Malaysian Rubber Board (LGM) and the Rubber Industry Smallholders Development Authority (RISDA) are joining forces to consolidate idle land owned by smallholders in a bid to revive local production and reduce the nation’s heavy dependence on imported rubber.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the program is vital, as Malaysia now imports over one million tonnes of natural rubber each year, costing the country around RM7 billion, despite its historical status as the world’s leading producer.

Under the initiative, smallholders with unused land will be encouraged to hand over management to LGM and RISDA, ensuring the plots are cultivated more systematically. The plan will be carried forward under the 13th Malaysia Plan (RMK13), with a focus on replanting, boosting commodity sector resilience, and securing a sustainable domestic supply.

According to Johari, about 95% of rubber smallholders in Malaysia own only two to four hectares of land, much of which is no longer actively farmed. Consolidating these plots, he said, would help achieve economies of scale and improve productivity.

He also underscored the need for political stability, noting that a steady political climate is essential for economic growth and the success of commodity sector reforms. His comments came after officiating the Jalur Gemilang Flag Raising and National Month launch at LGM headquarters, ahead of Malaysia’s National Day celebrations on August 31.