BANGI: Malaysia and Thailand have signed a memorandum of understanding (MoU) aimed at advancing sustainable rubber production, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Johari reaffirmed Malaysia's dedication to sustainable rubber practices during discussions with Thailand's Agriculture Minister.
"Because of this sustainability agenda, when we purchase rubber from Thailand, they must also meet sustainability standards.
"Otherwise, it will be challenging to maintain trade relations. They agreed and noted that they are also focusing on sustainability efforts," he said at the Malaysian Palm Oil Board (MPOB) Excellent Award 2024 here today.
Malaysia currently imports US$ 950 million (RM4.4 billion) worth of natural rubber and rubber products from Thailand annually, while exporting only US$ 105 million.
Despite the trade imbalance, Johari explained that Malaysia re-exports many imported rubber products, including rubber gloves and other rubber-based goods, to global markets.
"Sustainability is crucial for both countries to mutually benefit. If sustainability is upheld, both Thailand and Malaysia stand to gain," he said.
In addition, Johari said Malaysia is also working on rehabilitating approximately 420,000 hectares of abandoned land to boost domestic rubber production.
"We are in discussions with the Rubber Industry Smallholders Development Authority (Risda) and other government agencies to address this issue effectively," he added.
Earlier today, Malaysia and Thailand reaffirmed their commitment to enhance investment and bilateral trade through the Joint Task Force on Trade and Investment, with a target of US$30 billion (RM133.58 billion) by 2027.
Thailand's Prime Minister Paetongtarn Shinawatra is on an official visit to Malaysia from Dec 15-16.
During her official visit, Paetongtarn also saw the exchange of a memorandum of understanding (MOU) on rubber between Malaysian Rubber Board director general Datuk Dr Zairossani Mohd Nor and the Rubber Authority of Thailand's acting governor Sukatus Tarngwiriyakul.