Bright Outlook for Malaysian Rubber Industry

KUALA LUMPUR: Once a major source of income for the country, the production of rubber was reportedly declining and some investors even labeled it as a sunset industry.

However, the recovery in the global economy and the shortage of natural rubber have since enhanced prospects for the industry this year and there are positive signs for the future.

The International Monetary Fund (IMF), in its World Economic Outlook October 2016, said based on the global economic scenario, which was estimated to grow at a faster rate of 3.4% this year, the shortage will be at 350,000 tonnes this year.

“The expected natural rubber (NR) supply deficit is expected to be more severely felt during the period up to May 2017 as seasonal factors will affect the overall supply,” IMF said.

According to The Malaysian Rubber Export Promotion Council, Malaysia is still a favoured rubber exporter as the rubber produced is of high quality, while the prices are competitive in the international market.

In fact, the MREPC is confident that despite stiff competition from Thailand, Indonesia and China, Malaysia is expected to remain a major supplier of rubber gloves.

Bright Outlook for Malaysian Rubber Industry