Malaysia to reclaim top spot as world's leading rubber producer in 10 years, says Zahid

Malaysia is targeting to reclaim its position as the world’s leading rubber producer within the next decade, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said that the goal is achievable, provided that replanting efforts and innovation within the rubber industry are carried out comprehensively and systematically.
“I have discussed this with the director and chairman of the Rubber Industry Smallholders Development Authority (Risda), and I believe we can achieve this within 10 years. Malaysia has 800,000 hectares of rubber plantations, with 400,000 hectares in need of replanting,” said Zahid, who is also the rural and regional development minister.
“The replanting process must utilise high-quality saplings and automated methods for tapping and collection,” he told the media after attending the opening ceremony of the 2025 Risda Field Officers Convention here on Thursday.
Zahid also highlighted that the initiative includes promoting the use of rubber wood in the furniture industry, not as raw material, but as treated rubber wood, thus increasing its market value.
“This means that proceeds from rubber wood will become significantly more valuable. We anticipate this to provide a sufficient resource for Risda to operate independently, without relying on the government budget. This is our commitment, insya-Allah,” he said.
He also reflected on Malaysia’s former position as the global leader in the rubber industry, noting that the country is now ranked 10th.
"Malaysia was once the world's number one rubber producer, contributing 50%. Today, we have fallen far behind, with our neighbouring country (Thailand) now producing one-third of global rubber output.
“However, I am confident that, with the enthusiasm, dedication, and commitment of everyone involved, we will not only overcome the challenges ahead, but also elevate this industry to greater heights. Our goal is to reclaim the top position in the global rubber industry,” he said.
He emphasised the critical role of innovation, technology, and sustainable practices, in ensuring the continued competitiveness and productivity of Malaysia’s rubber sector.
Zahid said the initiative is part of the government’s broader strategy to foster rural development and reinforce the agricultural sector as a key pillar of the nation’s economy.
“We must be bold enough to move away from outdated practices. The rubber sector needs to become more appealing to the younger generation through the integration of modern technologies such as artificial intelligence, automation, and agricultural innovation,” he said.
“Imagine rubber plantations utilising the Internet of Things, drones to boost productivity, and e-commerce platforms linking smallholders directly to global markets. This isn’t just a transformation — it’s a revolution in the rubber industry that we all look forward to witnessing,” he added.
For over a century, Malaysia’s rubber industry has been a cornerstone of the country’s economic growth.
In 2023, the export value of Malaysia’s rubber industry, including rubberwood, was projected to reach RM37.2 billion, highlighting its significant role in the national economy.
During the tabling of Budget 2025, the government allocated various funds to support the rubber industry, including RM20 million to redevelop idle privately owned rubber plantations and RM60 million in matching grants under Risda for the smallholders’ latex production programme.
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