BALING: The government remains committed to enhancing the nation's rubber production to meet the demands of the local industry, as the commodity has been central to the nation's economic development for over a century.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia needs to reclaim its position as one of the leading producers of sustainable natural rubber by optimising 1.1 million hectares of rubber plantations nationwide.
He said this move would also help minimise the cost of importing natural rubber, which has reached RM6 billion.
"We were once the world's largest rubber producer, generating 1 million tonnes of rubber. However, production has now dropped to just 380,000 tonnes. As a result, the country has had to import rubber, amounting to RM6 billion, to meet domestic demand.
"There are 1.1 million hectares of rubber plantations in the country, but 420,000 hectares are neglected. We aim to tap these idle plantations to increase rubber production," he said after opening the Malaysian Sustainable Natural Rubber (MSNR) guidelines launching ceremony here today.
Johari said he has directed the Malaysian Rubber Board (MRB) to engage with rubber smallholders and plantation owners who have abandoned their estates to resume tapping operations.
"The ministry, along with MRB and in collaboration with the Rubber Industry Smallholders Development Authority (Risda), will explore ways to reactivate these idle plantations with the consent of the landowners.
"When we ask them, they cite reasons such as being too old to tap, high maintenance costs, and low rubber prices.
"If they agree to cooperate with us, we will hire workers to tap the rubber trees on their land to boost production, and they will receive a portion of the profits," he added.
Meanwhile, Johari announced that enforcement on MSNR guidelines will commence on Jan 1 next year.
He said MRB licence and permit holders will be required to comply with standard operating procedures (SOPs) to receive MSNR certification from the relevant agencies.
He said MSNR focuses on five key sustainability principles which include no deforestation for rubber planting, planting based on the National Land Code, environmental sustainability, social compliance, and supply chain traceability.
"One of the main global issues facing the rubber industry is the lack of traceability in raw materials. However, MRB has established a comprehensive traceability system across upstream, midstream, and downstream sectors, which will position Malaysia as a leader in sustainable natural rubber production and products.
"Recognising the challenge posed by the European Union's Deforestation-Free Regulation (EUDR), the implementation of MSNR is seen as crucial in maintaining Malaysia's 10 per cent market share, with natural rubber exports to the EU valued at RM636.81 million.
"In addition, Malaysia's rubber products hold a 16 per cent market share in the EU, valued at RM3.235 billion," he said.