KUALA LUMPUR: Small rubber plantations should be consolidated to increase productivity to help reduce the country's reliance on imported rubber, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said the issue of scarce labour has been impacting the productivity of small rubber plantations, and a consolidation of these plantations would help raise productivity.
Johari said Malaysia imported RM6.5 billion worth of rubber in 2022 and RM5.7 billion in 2023.
"Over the next 10 to 15 years, we will see growth in upstream aligned with downstream, and hence, reducing imports. Maybe we can reduce (the import) by 50 per cent in 10 years," said Johari during his speech at Malaysian Rubber Board (LGM) Technology Day 2024 here today.
According to him, Malaysia, which was the biggest rubber exporter, is now the largest rubber importer following a reduction in rubber production over the years.
Although the land area has not changed much in the past 10 year, Johari said the rubber production decreased by 55 per cent from 2013.
"Over a period of time, downstream industry grows significantly but upstream has been left behind. This resulted in supply deficiency and hence, we have to import," he added.
Later in a press conference, Johari said there were approximately 420,000 hectares of abandoned rubber plantation fields.
These areas, he said, could have produced between 500,000 to 550,000 metric tonnes of rubber annually.
"But this is not easy to do because of the cost involved, (especially because) these rubber plantations that have abandoned for so long are now overgrown with weeds and have turned into shrubland.In this matter, LGM will work together with Felcra Bhd to identify and clear up these lands," he said.
Johari added that the other issue was with smallholders who refused to let go of their abandoned lands.
He said that if the abandoned lands could restored, the government could provide local or even foreign workers to tap rubber trees, without waiting for the price of rubber to increase.
The current smallholders were ageing, he said, and their university-educated children were no longer interested in rubber tapping.
"We need to help by finding ways to consolidate this. We can supply the labour and the LGM can monitor the process to ensure that over time, our rubber import levels can be reduced," he said.
LGM Technology Day 2024 carries its theme "99 Year of Rubber Research" which aims to introduce and promote the latest technology and innovation in the rubber industry.
The two-day event is attended by rubber industry stakeholders such as smallholders, licensees and representatives of rubber industry players.
It features programmes such as the Rubber Smallholder Seminar, Rubber Workshop and the National Economic Rubber Conference 2024 to discuss current issues in the rubber industry.
During the ceremony, Johari launched the 100 years of Rubber Research logo by introducing the latest innovation from LGM, RRIMe-Formulary.
The RRIMe-Formulary is an electronic platform that offers various dry rubber product formulations such as industrial rubber products, general rubber products and tire products.
The event also celebrated the publication of LGM and the Royal Customs Department's book titled "Glossary of Classification Rubber and Rubber Products".
The book is a comprehensive reference and guide for LGM and JKDM on the terminology and classification of rubber and rubber products and is a reference by industry players, stakeholders and authorities involved in the rubber sector in Malaysia.