Malaysian rubber industry exports increase 169 percent over last year

Kuala Lumpur, Malaysia – The Malaysian rubber industry continues its upward trajectory with exports increasing 169.6 percent to RM 21.84 billion for the first quarter ended March 31, from RM 8.10 billion last year. 

Malaysian Rubber Council (MRC) chief executive officer Nurul Islam Mohammed Yusoff said the downstream rubber products industry had accounted for 89.5 percent of the total rubber exports.

This was equivalent to RM 19.54 billion, or an increase of 213.8 percent, driven by a strong increase in the latex goods sector.

Nurul Islam said latex goods such as rubber gloves, latex threads and condoms recorded a total increase of 250.6 percent due to the ongoing COVID-19 pandemic. 

“In the first quarter of 2021, latex goods accounted for 93.7 percent of total exports of rubber products, while dry rubber products accounted for the remaining 6.3 percent. 

“The gloves sub sector remained the largest export revenue generator for the rubber industry. 

“Made up mainly by the medical gloves sector, the gloves sub-sector increased nearly four fold or 265.7 percent to hit RM 17.86 billion in the first three months of 2021,” he said. 

In the dry rubber products sector, he said after a decline last year due to the COVID-19 pandemic, the sector bounced back to record a double-digit growth of 22.1 percent to reach RM 1.26 billion in 2021, from RM 1.00 billion in 2020. 

The dry rubber products sector includes tires, industrial rubber goods, general rubber goods and footwear.

MRC estimates the global demand for rubber gloves in volume terms will maintain a double-digit growth of between 12 percent and 15 percent in 2021. 

Nurul Islam said the global per capita consumption of rubber gloves was expected to increase to 25 pairs in 2021, driven by higher usage of gloves in major Malaysia’s export markets such as the United States and Europe, as well as large emerging markets, particularly in the Asian region. 

“The country’s rubber glove industry will maintain its positive momentum, and exports are expected to reach a new high for the full year of 2021. 

“Current initiatives are geared towards creating value for Malaysia’s rubber industry to ensure it remains resilient, agile, competitive and sustainable. 

“The intended outcome is to elevate the industry up towards the global value chain in ensuring optimizing potentials while enhancing the rubber industry to address bottlenecks and governance and reputational challenges,” he said. 

Nurul Islam said MRC would continue to play its role in its steering efforts that will enhance the competitiveness, capability and resiliency of the overall Malaysian rubber industry.

“Most importantly, we aspire to nurture a sustainable ecosystem in Malaysia where our players are able to prosper while remaining competitive in the face of global challenges,” he added.