PULAU INDAH, Selangor: The first export of Malaysian Sustainable Natural Rubber (MSNR) compliant rubber to the European Union (EU) reflects the country's commitment to complying with international sustainability standards ahead of EU Deforestation Regulation (EUDR) implementation.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said it demonstrates the agricommodity sector's ability to ensure that the industrial supply chain adheres to global sustainability practices.
He added that MNSR-compliant rubber would be a game-changer in enhancing the country's rubber production, aligning with international demand for sustainable natural rubber.
"I believe that with strong cooperation among all stakeholders in the rubber industry, Malaysia has the potential to become a global leader in sustainable and high-quality rubber production.
"Furthermore, advancements in technology and innovation will drive the growth of domestic rubber industry, benefiting the national economy while contributing to environmental sustainability," Johari said in his speech before launching the first export of MSNR-compliant to EU at Westports Malaysia Sdn Bhd.
The event saw the first export involving two companies, Lee Rubber Group Sdn Bhd and Seng Hin Rubber (M) Sdn Bhd, each exporting 100 tonnes of natural rubber to Slovakia and the Netherlands respectively.
Raw materials are sourced from local smallholders who comply with MSNR's standard operating procedures making this product on par with international standards.
Johari said the rubber industry plays a vital role in the socio-economic development of the country, serving as a source of livelihood for over 250,000 smallholder families and providing nearly 100,000 job opportunities in 2023.
The sector made a significant contribution to the economy with a total of RM27.8 billion export earnings last year, driven by a high-value rubber downstream industry, he said.
"One of the main purposes of MSNR is to safeguard the interests of Malaysia's local rubber industry, including maintaining the country's 15 per cent market share in the EU, valued at RM3.87 billion from total natural rubber exports," Johari added.
The MSNR initiative, which was introduced by the Malaysian Rubber Board on Oct 7 this year, aimed at ensuring the country's rubber industry meets international standards in line with the United Nations Sustainable Development Goals 2030.
It is a sustainability recognition through a regulatory and enforcement approach granted to LGM's licence and permit holders to ensure that rubber produced could enter the global market as a sustainable and competitive product.
It is also aligns with the EUDR that has been delayed for one year to December 2025, demonstrating Malaysia's commitment to international sustainability standards.