The Malaysian government will shoulder the holding cost for the rubber sector if the exporters need to put a halt in selling to support the SMR 20 price.
Tan Sri Bernard Dompok, Minister of Plantation Industries and Commodities, said earlier that the price scheme should jive in the tyre-grade SMR20 drop below US$ 2.70 per kg.
He said that the agreement between Thailand, Indonesia and Malaysia to cut down 300,000 tonnes of export which 39,000 tonnes will be taken by Malaysia.
The three countries which are members of the International Tripartite Rubber Council (ITRC) have agreed last month to cut down old rubber trees and slash their exports and global production to curb the disappointing global rubber prices. (RJA)