Malaysia's rubber exports increase 46.3 per cent to RM71 bln in 2021

KUALA LUMPUR: Malaysia recorded improved rubber export performance for the full year 2021 with total exports of rubber and rubber product sectors reached a record high of RM71 billion, an increase of 46.3 per cent from RM48.5 billion in 2020, the Malaysian Rubber Council (MRC) said.

In 2021, latex goods contributed 91.8 per cent to the total rubber products exports with rubber gloves contributing 88.9 per cent to the total rubber products export at RM54.8 billon, a surge of 55.4 per cent from RM35.3 billion in the same period in 2020, it said in a statement.

This was followed by industrial rubber goods (IRG) which was 40.7 per cent higher at RM1.3 billion compared with RM900 million in the same period in 2020.

Export of tyres also rose 30.7 per cent to RM1.7 billion compared with RM1.3 billion in 2020, while that of footwear and general rubber goods increased 19.6 per cent and 13 per cent, respectively.

Other latex (non-gloves) products indicated lower growth of 7.3 per cent as strong expansion in latex thread (47.4 per cent) was offset by contractions in catheters, condoms, and foam products.

The United States (US), Europe, and Japan dominated the consumption market of rubber products, accounting for about 50 per cent.

Last year, the US imported RM22.8 billion worth of Malaysian rubber products, an increase of 76.5 per cent, followed by Germany at RM3.79 billion (57.9 per cent), Japan at RM3.2 billion (40.5 per cent), Netherlands at RM1.76 billion (57 per cent), and Italy at RM1.2 billion (42.2 per cent) against 2020.

Imports from other major countries such as Canada (recorded an increase of 70.1 per cent) and Brazil (52.8 per cent) are catching up.

MRC chief executive officer Nor Hizwan Ahmad said demand was largely driven by the global annual consumption of medical examination and surgical gloves from the healthcare industry, as well as greater demand of cleanroom gloves from the manufacturing industry.

"We will also seek for new markets in countries and regions such as India, Africa, and Latin America because of their bigger populations and promising commercial prospects," he said.

During the Arab Health Exhibition held from January 24-27, 2022 in Dubai, MRC facilitated 98 business matches with prospective buyers, fetching total sales of RM110.5 million.

Meanwhile, Nor Hizwan said MRC is also looking into new ventures based on market demands, for example, engineered rubber products (ERP), including seismic bearings that could be promoted to countries affected by earthquake such as Indonesia, Turkey and Egypt.

He said retreading materials and rubber automotive components could also be promoted to countries where the automotive industry is growing such as Vietnam and Brazil.

Pakistan is also another potential market as the country's healthcare industry is showing growth, hence, an opportunity for Malaysia to further promote rubber medical devices such as medical gloves and foley catheters.

"We must be vigilant of the market trend and needs and be ready to embrace change, especially through innovation and adoption of advanced technology.

"With the government support and industry players' commitment, we will ensure that issues and challenges within the rubber industry are addressed and wider range of 'Made in Malaysia' rubber products are known to the rest of the world," he added.

-- BERNAMA