Malaysia pushing to diversify rubber export market, says minister

The government is pushing to diversify the country’s export market for rubber products amid increased uncertainty caused by US tariffs, says plantation and commodities minister Johari Ghani.

Johari said the private sector is welcome to reach out to him if they require any assistance to penetrate new international markets.

The move comes in the wake of the US imposing a general tariff of 10% on imports from all countries and special tariffs on about 60 countries, suspended at present for 90 days. Malaysia was hit with a 24% tariff rate.

“Diversification of export destinations is ongoing, but we will continue supplying to the US,” Johari told reporters after the Malaysian Rubber Council’s (MRC) 25th anniversary celebration here.

“I will leave it to the private sector. If they have any problems, they can come and talk to me,” he said when asked about target markets.

The US was the largest market for Malaysian rubber products as of last September, accounting for 31.4% of total export of rubber products valued at RM3.43 billion.

Other key export destinations in the first half of last year included China, with exports valued at RM593.1 million, Japan (RM586.4 million), Germany (RM581.0 million) and Singapore (RM470.1 million).

Last Friday, the ministry said all rubber glove exporters licensed by the Malaysian Rubber Board will now only be able to export gloves produced by local manufacturers.

The ministry said this measure will prevent Malaysia from becoming a trade diversion destination for products from other nations and ensure the sustainability of Malaysia’s rubber glove industry.

Last week, Bloomberg reported that US-based online traders importing goods from China had received numerous suspicious offers for re-routing the items through a country with lower tariff rates, or by falsifying shipment values.

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