Revive the natural rubber industry -Johari

14 September 2024

BENTONG: There is an urgent need to revive Malaysia's natural rubber industry.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said this during a visit to LRG Rubber Sdn Bhd in Bentong, Pahang.

The visit comes at a critical juncture, as Malaysia, once the world's leading exporter of natural rubber, now finds itself among the largest importers of the commodity.

Johari said he has initiated talks with the Rubber Industry Smallholders Development Authority (Risda) director-general and the Malaysian Rubber Board to encourage smallholders' participation in revitalising the sector.

Johari announced that he has begun discussions with the director-general of the Rubber Industry Smallholders Development Authority (Risda) and the Malaysian Rubber Board to encourage smallholders' involvement in revitalizing the sector.

The discussions focused on revitalising abandoned rubber plantations, increasing production, enhancing the downstream industry, and positioning Malaysia once again as a leading exporter.

Currently, Malaysia imports one million tonnes of natural rubber valued at RM6 billion annually for its downstream industries, while domestic production stands at approximately 380,000 metric tonnes.

"There are still 420,000 hectares of abandoned rubber plantations. If we can revitalize these areas, it will significantly reduce our reliance on imports," the minister stated.

Meanwhile, LRG Rubber emphasized its commitment to supporting local production.

"There are still 420,000 hectares of abandoned rubber plantations. Revitalizing these areas could significantly reduce our reliance on imports," the minister stated.

Meanwhile, LRG Rubber reaffirmed its commitment to supporting local production. In a statement, the company noted that it sources its natural rubber primarily from smallholders, accounting for 30 to 40 percent of Malaysia's natural rubber output, ensuring seamless integration into its manufacturing processes.

"As long as there is natural rubber production in the country, we will acquire it," the company emphasized, adding that Johari's recent visit to LRG Rubber has sparked new discussions on reclaiming untapped plantations and revitalizing Malaysia's natural rubber industry.

Additionally, LRG Rubber highlighted its dedication to social responsibility through its charitable foundation. These initiatives align with a broader strategy to strengthen the national rubber industry, focusing not only on increased production but also on sustainable practices.

"The push for sustainability will be guided by the Malaysia Sustainable Natural Rubber (MSNR) guidelines, ensuring that Malaysian rubber production meets global standards," the company stated.