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Malaysia must be a leading rubber producer again, says Johari

 

BALING: Malaysia must become one of the world's leading producers of sustainable natural rubber again, says Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

"We were once the world's largest rubber producer, generating 1 million tonnes of rubber," he said after launching the Malaysian Sustainable Natural Rubber (MSNR) guidelines.

"However, production has now dropped to just 380,000 tonnes. As a result, the country has to import rubber, amounting to RM6 billion, to meet domestic demand."

Over the years, other countries, including Thailand, Indonesia, and Vietnam, among others, have overtaken Malaysia as rubber producers.

For the record, Malaysia's rubber exports to global markets last year totaled over RM37 billion, with RM3.2 billion destined for the European market.

Johari said Malaysia could emerge as a leading rubber producer again if it optimised 1.1 million hectares of rubber plantations nationwide as there were idle plantations.

Johari said he has directed the Malaysian Rubber Board (MRB) to engage rubber smallholders and plantation owners who have abandoned their estates to resume tapping operations.

"When we ask them (to resume operations), they cite reasons such as being too old to tap, high maintenance costs, and low rubber prices."

He said the ministry, along with MRB and the Rubber Industry Smallholders Development Authority (Risda), will explore ways to reactivate the idle plantations with the consent of the landowners.

"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.

He said increased production would help the country cut down on importing natural rubber.

 

 

Meanwhile, Johari announced that enforcement on MSNR guidelines will commence on Jan 1 next year.

He said MRB licence and permit holders must 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."

Johari also said Malaysia's rubber products hold a 16 per cent market share in the EU, valued at RM3.235 billion.

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