Rubber sector poised for higher demand in 2026 [BTTV]

By Faiqah Kamaruddin

KUALA LUMPUR: Malaysia's rubber sector, which exports more than RM33 billion worth of related products annually, is expected to see stronger demand next year, with technical rubber products and medical gloves projected to grow by up to 10 per cent.

Rubber expert Denis Low told Business Times that Malaysia has a long-standing history in global rubber exports, with growth prospects improving as the world moves past the Covid-19 pandemic when demand for rubber gloves skyrocketed.

"We believe that growth of about eight per cent to 10 per cent is possible in technical rubber products and also in the medical glove industries," Denis said.

On Malaysia's competitiveness in research and development (R&D) and technology, he said the country has transformed from a raw rubber producer into a global player in value-added rubber products.

Through continuous developments and innovations, Malaysia now produces high-quality mattresses, medical gloves, technical rubber absorbers and condoms.

"Our rubber development programme is ongoing, with the Malaysian Rubber Board (MRB) spearheading research to enhance productivity and advance technology," he said.

GROWTH DRIVERS

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia's export number is driven by strong R&D capabilities, despite the country's growing reliance on imported natural rubber.

He said Malaysia now imports an average of RM7.5 billion of natural rubber each year due to domestic production shortfalls.

"The rubber industry has long been a key contributor to the country. At one time, we were the largest exporter of natural rubber, but today, we are among the largest importers.

"This shift reflects how the world has changed and how the country's development has diversified to include many other agri-commodities.

"What I want to emphasise here is that, even though we have limited natural rubber, the technology in R&D that we possess is actually recognised worldwide.

"Because of the strength of our R&D spanning midstream and downstream processes, we are able to achieve exports of over RM33 billion," he said at the 100 Years of Rubber Research Celebration event organised by the MRB.

INNOVATION AND TECHNOLOGY

Since its establishment, MRB has commercialised over 200 R&D technologies and registered 394 patents, reinforcing Malaysia's status as a global centre for rubber innovation.

These innovations cover the entire rubber industry value chain and have had a profound impact on the domestic sector, while also shaping the development of the global rubber industry.

The minister said MRB's research efforts have been crucial in tackling challenges such as crop diseases, low yields, market fluctuations, and global economic crises.

On next year's export target, Johari said it will largely hinge on the pace of global economic growth.

"If the global economy grows around three to four percent, demand for our products is also expected to increase at nearly the same rate.

"The added value generated through technology, innovation, and local processing capabilities enables us to produce high-value products for the global market, and this is our export strength," he told reporters after officiating the event.

SUSTAINABLE RUBBER

On sustainability, Johari said MRB plays an important role in strengthening the rubber industry, especially as consumers increasingly prioritise sustainably produced agri-commodities.

The board has introduced the Malaysian Sustainable Natural Rubber (MSNR) initiative, which emphasises the principles of sustainability, traceability, transparency, and socio-economic responsibility.

The initiative is crucial to maintaining the marketability of Malaysian rubber products in countries with high sustainability standards. It also ensures that imported rubber is sourced from producers that adopt sustainable practices.

Currently, Malaysia imports natural rubber from Thailand, Vietnam, Ivory Coast, and several other countries.

Johari said there remains limited information on the sustainability practices in these source countries, posing a major challenge for the industry.

"For countries with limited sustainable rubber products, I have suggested to MRB that we share our R&D and technology with them.

"When sourcing from these countries, we need to guide them on sustainability standards and introduce a traceability system so that they can increase the value of their products by complying with these requirements," he said.

Johari added that the MRB Strategy 2026–2030 will also emphasise the importance of automation, robotics, artificial intelligence, geospatial mapping, and supply chain digitalisation.

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