KOTA KINABALU: The Sabah Rubber Industry Board (LIGS) will remain operational even though the commodity has not helped much in eradicating poverty for stakeholders.

Sabah Agriculture, Fisheries and Food Industry Assistant Minister Peto Galim said the price of rubber is controlled by the international market.

"It is difficult to ensure the price of rubber is high. Recently, the price of rubber has gone up slightly. We are hoping it will continue to rise as the economy improves.

"LIGS, under the ministry, is working hard to help small-scale rubber tappers find alternatives.

"We have considered letting them use the land they own to plant pineapple and durian," he said at a press conference at the Sabah International Convention Centre here.

Peto, representing Minister Datuk Seri Jeffrey Kitingan, witnessed the signing of a memorandum of understanding between LIGS and two pineapple-related companies.

Last year, following the New Straits Times' story about a rubber tapper borrowing RM120 from villagers to attend his daughter's Sijil Tinggi Persekolahan Malaysia results ceremony, Kitingan admitted that rubber was not as profitable as it used to be due to the availability of synthetic rubber and advances in technology.

He said the cost of production inputs was constantly rising, making smallholders uncompetitive, with rural farmers often left to fend for themselves to educate their children.

According to the LIGS website, the price of rubber, depending on its types and quality, ranges between RM0.83 and RM8.78 per kg today.

LIGS general manager Sabdil Tanjong said the board has 98,000 members.

He said the board did not have data on how many members have been lifted out of hardcore poverty, but gave an assurance that they earned an average of RM1,500.

Last year, the Sabah government allocated RM20 million to continue the Production Incentive for Rubber Smallholders to stabilise volatile rubber prices.

Additionally, RM17.01 million was allocated to LIGS for operational and developmental expenditure.

https://www.nst.com.my/news/nation/2024/04/1038587/sabah-rubber-industry-board-keep-going-despite-rubber-price-uncertainty