MRPMA wants central bank to rescind 75pc earnings rule

KUALA LUMPUR: The Malaysian Rubber Products Manufacturers Association (MRPMA), whose members contributed to the country’s RM18 billion worth of rubber exports last year, has appealed to Bank Negara Malaysia to rescind the ruling to convert 75 per cent of their export earnings into ringgit.

Last Friday, the central bank announced the new policy, which took effect on Monday.

“This sudden and restrictive move will have a detrimental impact on rubber product exporters, particularly the small and medium players,” said MRPMA president Datuk Dr Ong Eng Long.

“We have more than 100 members and we represent the whole rubber industry, not just rubber medical devices manufacturers,” he told the Business Times in an interview yesterday.

“The bigger manufacturers have the financial muscles to withstand currency fluctuations but our medium and smaller manufacturers, which are operating at very thin margins do not have the resources to deal with this,” he added.

Also present was MRPMA vice-president Lim Sum Teck.

“We are rubber manufacturers, we’re not currency traders. Apart from stearic acid, most of the chemicals our members use to process dry rubber are imported and priced in US dollars,” said Lim.

“We appeal to Bank Negara to revert to status quo. It looks like the bankers stand to benefit from this new policy and it is to the detriment of our members, particularly the medium and small manufacturers,” he added.

In a separate interview, Top Glove executive director Lim Cheong Guan noted that rubber gloves manufacturers buying nitrile latex from a local manufacturers are currently being quoted in ringgit.

“Prior to Bank Negara’s announcement, we have been buying nitrile latex quoted in US dollars from a few suppliers, some imported and one local.