Rubber to surpass palm oil’s contribution to economy

PETALING JAYA: The rubber industry is expected to become the number one commodity contributor to the the country’s economy as palm oil is facing difficulties in the international market, said Primary Industries Minister Teresa Kok Suh Sim.

She said in terms of commodity export earnings, rubber and rubber products were currently the second largest contributor after palm oil.

“In 2017, export earnings from rubber and rubber products contributed RM32.1 billion to national exports, (up by 30.2 per cent from 2016).

“The rubber products industry has flourished from a mere 20 manufacturers in the 1970s to more than 300 today,” she said at the Malaysian Rubber Export Promotion Council ( MREPC) Industry Awards Night here last night.

Kok said 11 of the manufacturers were now major players and were listed on Bursa Malaysia with a market capitalisation of RM33.6 billion.

She also said Malaysia was among the world’s top exporters of rubber products, exporting products to 195 countries.

Of significance, Malaysia is the world’s largest producer and exporter of rubber gloves and is also among the top exporters of condoms and catheters globally.

“In this regard, I hope the dry rubber products segment continues to chart a more creditable growth in exports.

“These are challenging times. On the external front, the US- China trade conf lict, if protracted, could affect global growth and demand. On the domestic front, the private sector has to step up investment to drive economic growth, especially in the downstream sector,” she said. — Bernama