PULAU INDAH, Selangor: Malaysia is exporting its first 200 tonnes of sustainably certified rubber to the European Union (EU) as it seeks to increase compliance ahead of the rollout of new anti-deforestation rules.
Two firms, Lee Rubber Group Sdn Bhd and Seng Hin Rubber (M) Sdn Bhd, will each export 100 tonnes of Malaysian Sustainable Natural Rubber (MSNR) compliant rubber, to Slovakia and the Netherlands.
Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani said MNSR-compliant rubber will be a game-changer in enhancing the country's rubber production, aligning with international demand for sustainable natural rubber.
The first export of such rubber to the EU reflects the country's commitment to complying with international sustainability standards ahead of EU Deforestation Regulation (EUDR) implementation, Johari added.
He said it also demonstrates the agricommodity sector's ability to ensure that the industrial supply chain adheres to global sustainability practices.
"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 before launching the first export of MSNR-compliant rubber to EU at Westports Malaysia Sdn Bhd here today.
The rubber's raw materials are sourced from local smallholders who comply with MSNR's standard operating procedures, making it 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.
Malaysia and Indonesia, the world's biggest exporters of palm oil, have been staunch critics of the implementation rules of the EU policy, calling them discriminatory.