KUALA LUMPUR: The Plantation and Commodities Ministry will propose consolidating rubber smallholders in Budget 2025 to improve production and address the widespread underutilisation of rubber trees in Malaysia.
Its deputy minister Datuk Chan Foong Hin said currently, about 420,100 hectares of mature rubber trees remain untapped due to a shortage of labour. While Malaysia is a global leader in the rubber glove industry, he said there is significant potential for growth in the upstream segment of the rubber sector.
"Right now, we are very focused on resolving issues related to untapped labor across various parts of the country."
"One of the key items on our wish list for the upcoming budget, which we will be submitting to the Ministry of Finance (MoF), is a proposal for the government to adopt a comprehensive, cross-ministry approach. "This approach would prioritise the clustering of rubber smallholders as a national agenda," he told the reporters after officiating the 11th International Rubber Glove Conference & Exhibition (IRGCE 2024) here today.
Malaysia, the world's leading manufacturer of rubber gloves, is currently grappling with falling rubber prices and a weakening currency, which have reduced its appeal to foreign workers.
As such, Chan said it is also important to focus on the upstream sector to maintain the industry's resilience.
"It's important to understand that without a sustainable upstream sector, there can't be a sustainable downstream sector. "The resilience and reliability of the supply chain are crucial. "In Malaysia's rubber industry, we are currently global leaders in downstream activities, especially in the glove sector, but there is still significant room for growth in upstream activities," he noted.
To tackle the problem of untapped rubber trees, Chan said the Malaysian Rubber Board will be responsible for organising the consolidation of smallholders, while the Malaysian Rubber Council will focus on promoting Malaysian rubber products internationally.
The ministry forecasts that Malaysia's rubber glove industry will generate RM12.4 billion in export value this year, up from RM11.8 billion last year, securing a 45 per cent share of the global market.
Chan also noted that earlier in July, the government permitted the entry of up to 10,000 foreign workers to support the upstream rubber industry, though this quota remains underutilised.
He said the ministry is also exploring the possibility of expanding quotas for the downstream rubber industry.