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Risda Subsidiary To Venture Into Furniture Manufacturing

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TEMERLOH, Dec 9 (Bernama) -- The Rubber Industry Smallholders Development Authority (Risda) will form a new subsidiary company, Risda Kayu (RK), to buy rubberwood from smallholders involved in replanting programmes nationwide.

Risda chairman Tan Sri Abdul Rahim Tamby Chik said with this company, smallholders will be protected from exploitation by third parties who buy rubberwood at extremely cheap prices.

"There are middlemen who buy rubberwood at RM500 per hectare when the actual current price is RM16,000 for the same area," he told reporters after attending an assembly with Risda chairman and Pahang non-governmental organisations (NGO), here.

He said the company, set up with a paid capital of RM5 million, will not only buy wood from smallholders at better prices, but also pursue furniture making and carpentry using the wood obtained.

"Rubberwood is categorised as a white wood that is of high quality and value to produce furniture that is becoming popular around the world," he said.

Abdul Rahim said they will also negotiate with Felda and Tabung Haji to buy rubberwood and oil palm trunks from both agencies.

He said oil palm trunks can be processed to produce chipboard to make furniture.

He added that through RK, Risda will also negotiate with government agencies related to the wood industry to offer green services such as planting rubber trees and oil palm which can also increase the income of smallholders.


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