Malaysia, Indonesia, Thailand to stabilise rubber prices
PUTRAJAYA: Malaysia, Thailand and Indonesia will discuss measures to reduce the rubber export quota in an attempt to stabilise the rubber market, said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.
He said the International Tripartite Rubber Council (ITRC), comprising Malaysia, Indonesia and Thailand, would meet in Bangkok on Sept 15 to discuss measures including reducing output to shore up prices .
Citing an example, he said the SMR 20 rubber price in Malaysia dropped from 957.23 sen per kilogramme (kg) in January to 626.65 sen per kg in July.
"The fluctuation of rubber prices was due to declining demand for the commodity, especially from China, the world's largest rubber consumer. Therefore, we need to control the supply.
"During the ITRC meeting, we will discuss the Agreed Export Tonnage Scheme to stabilise rubber prices.
"I think we can reduce the rubber production from 10 to 15 per cent from the three countries from the current output," he told reporters at an Aidilfitri open house hosted by his ministry here yesterday.
Mah said a draft memorandum on rubberised road between Malaysia, Indonesia and Thailand would be prepared during the meeting in an effort to increase demand and usage of rubber in all these countries.