The Malaysian Government Plans To Boost Rubber Prices By Increasing Domestic Use Of Rubber

- Sep 21, 2020-

The Malaysian House of Lords (Dewan Negara) stated in an interview on September 14 that since the beginning of this year the new crown pneumonia epidemic has affected global market demand, especially China’s demand, the government will work to stabilize rubber prices and increase its added value. . The Malaysian government plans to increase the use of rubber in the country to boost rubber prices in the medium and long term; including the use of rubber in road construction, and the production of new rubber-based products and value-added products, including rubber gloves.

II Datuk Seri Dr Wee Jeck Seng, Deputy Minister of Plantation Industry and Commodities, stated that the government is cooperating with the world’s major rubber producing countries, namely Thailand and Indonesia, to strengthen and stabilize the international market under the framework of the International Tripartite Rubber Council (ITRC). Rubber prices. He added that the government will also introduce the concept of rubber community farms to increase the supply of raw materials and create additional income for small farmers through cash crops and animal husbandry.

In addition, Wee also stated that the government plans to implement the latex corridor in the eastern region to obtain local latex products to support the development of latex product manufacturing, increase the income of small rubber farmers, and increase the consumption of natural rubber in the tire industry. This will open up new investment opportunities for Malaysia, so it can further expand the rubber product manufacturing industry.

The new crown pneumonia epidemic has led to a sharp decline in global rubber demand. Rubber prices are intended to fall. Major rubber producing countries have taken measures to stabilize rubber prices. One of Thailand's main measures is to encourage domestic rubber consumption.

Luckchai Kittipol, Honorary President of the Thai Rubber Association, said recently: As the Ministry of Transport of Thailand has decided to use natural rubber nationwide to install obstacles on roads, it is expected that domestic rubber consumption will increase from 800,000 tons in 2019 to 900,000 tons. . It is also suggested that the government of this country should further promote the consumption of natural rubber to maintain domestic prices and reduce excessive dependence on exports. At present, the country's rubber exports account for up to 80% of the total output.

The Association of Natural Rubber Producing Countries (ANRPC) recently predicted that due to the new crown pandemic that has suppressed demand and plunged the industry into crisis, global natural rubber production may fall by 4.9% this year to 13.149 million tons, and global consumption will drop by 8.9% year-on-year to 12.544 million tons.