ROSIER OUTLOOK: A farmer collects latex at one of many rubber plantations here. The outlook for the nation’s rubber industry is getting rosier with exports set to rise by at least 10 per cent this year from RM16.028 billion recorded last year. — Reuters photo
KUALA LUMPUR: The outlook for the rubber industry is getting rosier with exports set to rise by at least 10 per cent this year from RM16.028 billion recorded last year driven by continued strong demand, thanks largely to the global economic recovery.
Against such a backdrop, International Trade and Industry Minister Datuk Seri Mustapa Mohamed has asked the industry to take advantage of the pick up in demand by being ready with competitive products sought by major importing countries.
Last year, rubber exports increased by 24 per cent compared with RM12.478 billion in 2009, he told reporters after a dialogue session with rubber and rubber-based industry associations here yesterday.
Meanwhile, total sales of rubber products last year amounted to RM13.6 billion, with rubber gloves accounting for 57 per cent of the sales, tyres and tubes at 14 per cent and all other products collectively at 28 per cent.
Mustapa said Malaysia, as the world’s third largest rubber producer after Thailand and Indonesia, would increase rubber production to 980,000 tonnes this year from 940,000 tonnes last year, backed by the current market prices.
Mustapa said six major rubber glove companies in the country would add RM110 million for the total investment to RM470 million this year to expand their capacities.
The minister also said the industry recorded more than three-fold increase in investment to RM915.6 million last year as compared with 2009.
Malaysia’s rubber trade performance for the first two months of this year improved by 16.3 per cent, indicating a positive outlook for the rest of the year, he added.