economy

Consolidation the key

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.

The issues of scarce labour have been affecting small rubber plantations' productivity, and that a consolidation of the plantations would help raise productivity, he added.

Johari said Malaysia imported RM6.5 billion 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 at the Malaysian Rubber Board's (LGM) Technology Day 2024 here today.

According to him, Malaysia, which was the biggest rubber exporter, is now the largest rubber importer as the raw material production reduced over the years.

Although the land area had not changed much in the past 10 year, Johari said the rubber production had dropped 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 about 420,000 hectares of abandoned rubber plantations.

These areas, he said, could have produced between 500,000 tonnes and 550,000 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 however, the other issue was with smallholders who refused to release their abandoned lands.

"They do not want to surrender or lease their lands to us, (but) what can we do? The land belongs to them."

Johari added that if the abandoned lands could be redeveloped, 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 the 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.

Among the programmes taking place are the Rubber Smallholder Seminar, Rubber Workshop and the National Economic Rubber Conference 2024 to discuss current issues in the rubber industry.

Johari also launched the 100 years of Rubber Research logo by introducing the latest innovation from LGM: RRIMe-Formulary, an electronic platform that offers various dry rubber product formulations such as industrial rubber products, general rubber products and tire products.

LGM, together with the Royal Customs Department, also unveiled its collaborative book project titled Glossary of Classification Rubber and Rubber Products.

The book is a comprehensive reference and guide for LGM and the Customs Department 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.

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