The sector exports remain resilient due to innovations and technology, says MRC 

By SHAFIQQUL ALIFF / Pic BLOOMBERG

MALAYSIA’S rubber and rubber products exports rose by 70.7% year-on-year (YoY) to RM63.2 billion in the first 10 months of the year driven mainly by the large demand for latex-based goods which rose 86.3% YoY to RM51.4 billion. 

Malaysian Rubber Council (MRC) stated rubber products exports accounted for 92.7% of exports in the January-October period with rubber gloves the highest earner export revenue earner at RM50 billion, which was 90% higher YoY, as the sector gained from higher sales volumes and prices. 

Medical gloves made up 40.1% or RM22.2 billion of the latex goods exports as many countries ramped up their vaccination programme with the large-scale vaccine deployment increasing the need for medical gloves such as examination gloves.

The US remains the largest market for Malaysian rubber products with a total export of RM20.8 billion, an increase of 118.9% YoY till October 2021. 

Malaysian rubber glove producers such as Top Glove Corp Bhd, Hartalega Holdings Bhd and Supermax Corp Bhd have made Malaysia the largest rubber glove makers in the world. 

The companies have enjoyed a bumper year with higher average selling prices and sales volume due to demand triggered by the Covid- 19 pandemic the world over. 

Rubber products exports to Canada rose by 126.3% in the period while exports to Germany rose 99% YoY, Netherlands up 93.7%, Japan 72% YoY and Brazil 67.3%, a MTC statement yesterday noted. 

Dry rubber products exports also experienced growth as the domestic tyre industry exports rose by 28.1% to RM1.4 billion. 

The US continues to remain the country’s leading importer of tyres, an increase of 45.5% YoY to RM600 million. 

Industrial rubber goods which comprise products for the automotive, mining and construction sectors and footwear also showed an encouraging increase within the same period compared to last year, according to the MRC. 

MRC CEO Nor Hizwan Ahmad stated the sector exports remain resilient due to innovations and technology. 

“MRC is pushing for industry players to move up the global value chain by introducing new channels and ideologies such as through collaborations with international development organisations (IDOs) to explore business prospects, as well the variations in financing flow for rubber medical devices and dry rubber products,” he stated in the release yesterday. 

Nor Hizwan added that MRC has organised various webinars to assist companies and to expose them to the IDOs, the benefits of engaging with IDOs to explore business prospects and the variations in financing flow for rubber medical devices and dry rubber products. 

The most recent webinar was held on Oct 20 this year for rubber medical devices (RMD) companies to gain more information on IDO procurement opportunities, specifically on processes and requirements under the Global Fund’s Covid-19 Response programmes and the African Medical Supplies Platform, the industry mouthpiece stated.

“Through this initiative, MRC has successfully assisted RMD companies to be included in the supply chain for the pandemic database of Asian Development Bank,” he added.

MRC will embark on a new initiative namely the Global Fund for Rubber Innovation to promote new ideas and innovations and inventions with high commercial viability within the rubber industry, Nor Hizwan said. 

With a RM10 million grant, the initiative intends to seed innovative interdisciplinary non-fundamental research with the potential to spur investments in high-value products and technologies within the rubber and rubber products industry. 

“We hope to create more value to the industry by projecting more market opportunities through commercialisation and investment of the new and enhanced down- stream rubber products and upstream and midstream equip- ment or technologies. When it comes to rubber, no one knows rubber-like Malaysia,” he said.