KL helps rubber planters

KL helps rubber planters

KUALA LUMPUR (AFP): Malaysian on Friday approved a one billion ringgit (US$263 million) fund to provide loans to some 300,000 rubber planters hit by flagging prices.

The decision to set up the fund was made by a special cabinet committee to raise the income of rubber smallholders, said Deputy Prime Minister Abdullah Ahmad Badawi who chaired a four-hour meeting.

"This cabinet committee agrees that the natural rubber industry is a vital industry and therefore the welfare of rubber smallholders must be looked after," he was quoted as saying by the Bernama news agency.

"We hope the plight of these smallholders can be alleviated and what the government has done can assist these smallholders to overcome the impact of flagging rubber prices."

Abdullah said the fund, which would be disbursed through various agencies, would be used for rubber replanting and to help the smallholders cultivate other crops for extra income.