KUALA LUMPUR: Malaysia’s rubber industry registered RM47.6 billion in export value in 2022 (3.1% of the country’s total export earnings), down from a record high of RM71 billion in 2021 and RM48.5 billion in 2020.
Deputy Prime Minister and Minister of Plantation and Commodities Datuk Seri Fadillah Yusof said that although rubber production in Malaysia is declining in the upstream sector, it is still contributing significantly to the country’s gross domestic product (GDP) and export revenue in the downstream sector.
“Currently, Malaysia is the world’s largest producer and exporter of rubber gloves and ranks seventh as the main natural rubber producer,” Fadillah said in his speech at the International Rubber Conference 2023 here today.
The conference was jointly organised by the Malaysian Rubber Board and the International Rubber Research and Development Board.
Fadillah said the government policy emphasis will be on revitalising the upstream sector and expanding the downstream sector, including enhancing sustainability by implementing circular economy concepts.
“Through National Agricommodity Policy 2021-2030, the rubber sector will focus on 11 strategies that are being implemented along the five policy thrusts to restructure the upstream segment, modernise the midstream segment and support the growth of the downstream segment.”
Fadillah disclosed that the government will establish Malaysian Sustainable Natural Rubber (MSNR) guidelines to ensure that Malaysian raw rubber is certified as sustainable raw rubber sourced responsibly and complies with Malaysia’s current social and environmental laws.
“The development of MSNR guidelines was driven by the needs of the industry for sustainable raw materials that are free from deforestation, traceable and legally compliant with current social and environmental regulations in Malaysia,” he said.
Fadillah told reporters that the MSNR guidelines are aimed at addressing the three pillars of sustainability (environmental, economic and social), as Malaysia is a signatory to the UN Agenda 2030 on Sustainable Development.
“These guidelines have considered the needs and challenges of rubber smallholders in Malaysia in complying with sustainability principles, an issue which most of the available sustainability-related documents at present have been unable to address,” he said.
He added that the rubber industry is facing a host of global issues not least of which are sustainability, climate change as well as rubber plant diseases.
“Sustainable production of natural rubber in Malaysia must comply with the following five principles: zero deforestation, no land grabbing, environmental sustainability, social compliance and traceability of supply chain.”
Fadillah said the rubber industry contributes to the Malaysian economy, in terms of GDP, export earnings, employment and income generation, particularly among smallholders.
“The government will continue to provide the necessary enabling framework and ecosystem to safeguard the Malaysian upstream industry, especially the smallholders by synergising the relevant stakeholders through flagship programmes such as the Rubber Production Incentives, the East Coast Latex Corridor and the National Rubber Transformation Programme,” he said.
Fadillah hopes the rubber fraternity will continue to explore not only research and development but also commercialisation capabilities and innovation performance in major and potential markets.
