Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 27): Malaysia Rubber Glove Manufacturers Association (MARGMA) has applauded the government’s incentive under Budget 2018 to allocate RM200 million for a rubber replanting programme, which will assist the country’s rubber tapper.

At the same time, MARGMA has also hailed the government’s measures to provide infrastructure to increase production of latex which will raise the income of rubber smallholders.

“These incentives, as announced in Budget 2018, will undoubtedly boost the export of rubber gloves and reinforce Malaysia’s No 1 position as the leading producer of medical examination and surgical gloves in the world,” the industry group said in a statement today.

At the same time, MARGMA said it is “pleased” with the extension of the incentive period for accelerated capital allowance of 200% on automation equipment for manufacturing sectors from the year of assessments 2018 to 2020.

MARGMA also noted that it is happy with the government’s allocation of RM245 million, sourced from the Domestic Investment Strategic Fund, to upgrade the facilities for smart manufacturing.

“This is in line with the Industry’s aspirations to fully automate and modernize its manufacturing plants across the country,” the rubber industry group added.

Under Budget 2018, the government has collectively allocated RM6.5 billion to assist farmers, fishermen, smallholders and rubber tappers.

Of this, RM2.3 billion will be channelled as financial assistance to farmers, rubber tappers, smallholders and fishermen, as part of its initiative to invigorate the agricultural sector.

Specific to the rubber industry, the government will carve out RM200 million from the enlarged allocation for rubber replanting programme and provide infrastructure to increase production of latex instead of cup lump as this will raise the income of smallholders.

It was reported that rubber smallholders contribute 90% or more of all rubber produced in Malaysia.

Currently, it is said that the country boasts close to 350,000 smallholders in Malaysia, with nearly one million people classified as dependent on rubber for their livelihood.

      Print
      Text Size
      Share