By Lian Cheng
KUCHING, Feb 16: Modernisation of Agriculture and Regional Development Minister Dato Sri Dr Stephen Rundi has tabled the Sarawak Rubber Industry Board (Sarib) Bill, 2022 to repeal the Rubber Ordinance 1958 and to set up Sarib to regulate and revitalise the rubber industry.
While tabling the bill at State Legislative Assembly (DUN) today, Dr Rundi explained that the main purpose of Sarib is to aid the smallholder sector after a prolonged decline in rubber production in the State to increase domestic production, and to reduce the import of raw rubber material into the country.
With the establishment of Sarib, he said, the channelling of development funds and the implementation of the rubber development projects will be more focused, effective and efficient.
The Kemena assemblyman (GPS-PBB) said when passed, the bill will grant Sarib the legislative powers that would cover all activities in the upstream and downstream of the rubber industry, including the planting of rubber plants, the production of rubber and hevea wood and more.
The Bill also covers all activities relating to the selling, distribution and manufacturing of gloves, tires and other products made of natural or synthetic rubber or both.
As the industry is dominated by smallholder sub-sector, the growth and vitality of this commodity is of prime importance to the State government.
On the Rubber Ordinance 1958, he said it came into force in 1959 to govern and regulate the planting of rubber plants and seeds and the productions, sales, export and import of the products.
“This colonial era ordinance has not been revised since 1967 with some sections being ‘sunset clauses’ or no longer relevant, which renders it obsolete. On the other hand, the rubber industry remains stagnant with less emphasis and little progress overtaken by events such as the introduction of oil palm crop in late 1960s.
“This current legislation which was enacted during the British colony is long overdue. Many sections of the provisions therein are no longer relevant as specific legal provisions are required to be amended as and when the pertinent issue arises. The Ordinance defines rubber with limited scopes which includes only all rubber plants and seeds and excludes rubber products or manufactured articles of rubber,” said Dr Rundi.
He said currently, there is no explicit function and power given to any specific body or agency to undertake and regulate the overall activities within the rubber industry in the State.
The Ordinance, he said, does not have a statutory entity to carry out its regulatory functions making it ineffective in facilitating and developing the rubber industry.
“The introduction of this new Bill constitutes a regulatory function with coherent framework and sets the path for a more comprehensive policy directions than its predecessor and to make better provision in respect of the rubber industry, particularly the smallholder subsector in Sarawak. These provisions will enhance all government initiatives and interventions within this sector to be implemented successfully,” said Dr Rundi.
He said, rubber commodity has long been an important source of exchange earnings and revenues to the State, as well as creating economic activities and generating income to the smallholders.
Export revenue of natural rubber showed a declining trend since 2010 from RM333.70 million to RM63.29 million in 2020 — a substantial decline of 81.03 per cent.
“There are good prospects for the Natural Rubber Industry in Sarawak. In 2020, Malaysia imported 349,251 metric tonnes of concentrate latex to support its rubber-based industry in the country. Thus, this will offer new opportunity for Sarawak to produce latex concentrate in order to reduce import of latex into Malaysia,” said Dr Rundi.
“The Department of Agriculture alone, having to take care of many other crops, will not be able to cope up with the heavy responsibilities. Having a full-fledged authority will ensure a dynamic and sustainable development of the rubber industry in Sarawak.”
This new Bill, he said, plays a significant role with high expectations to meet the demand for economics of scale and requirements of the modern rubber industry in the State. — DayakDaily
