Govt agencies should use local rubber products in projects

KUALA LUMPUR, Aug 28 (Bernama) -- The Primary Industries Ministry has urged government agencies to come out with a directive for contractors to use local rubber products to promote the industry and benefit smallholders.

“It doesn't make sense that our rubber gloves, for example, are being widely exported to many countries, but local rubber is not used by many projects in Malaysia,” said Minister Teresa Kok Suh Sim to reporters after launching the National Rubber Economic Conference 2018 here today.

She said rubber and palm oil were two main commodities which should be promoted, especially since the industries were driven by innovation and research and development (R&D) programmes that could enhance the products. 

Kok also noted that Malaysia could no longer merely sell rubber or palm oil as commodities, but also as value-added products.

“With our established base of rubber product manufacturers, excellent infrastructure, market-driven R&D and the combined efforts of the related ministries and agencies, the Malaysian rubber industry has transformed and shifted its focus to downstream activities, particularly on manufacturing high-end innovative products,” she added.

The rubber industry contributed RM32.3 billion in export earnings in 2017, a RM7.5 billion or 30 per cent increase compared to the previous year, due to firm global demand for rubber products.

Meanwhile, in her speech earlier, Kok said that about half a million rubber smallholders produced almost 93 per cent of Malaysia’s natural rubber.

As a short term measure to encourage them to continue tapping during periods of low rubber prices and to ensure a sustained minimum income level, the government would continue to implement the Rubber Production Incentive (IPG) programme via the Malaysian Rubber Board (MRB) .

MRB Director-General Datuk Dr Zairossani Mohd Nor said the IPG would ensure that smallholders get a minimum income of between RM1,200 and RM1,300 for an average of two hectares of rubber plantation.

“The incentive will depend on rubber prices. On average, we can give 30 sen or 40 sen per kilogramme to the smallholders, which we hope will help bolster the latex industry which is now slightly declining,” he added.

— BERNAMA