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- Why has Malaysia lost its position in the natural rubber industry?
- Malaysia has lost her position as a major player in the world natural rubber industry. The country has suffered much losses in revenue because of that. Nothing wrong with the policy though. Despite the growing attractiveness of palm oil, the government has always maintained the country’s commitment to NR.
- Is there volatility in the price of natural rubber in Malaysia?
- Conclusion: There are volatility in the price of natural rubber in Malaysia over the next 10 years. Arias and Dijk (2019) stated that natural rubber is an important polymer in human society, where this study found that over 40,000 products have been produced for community use. Natural rubber is produced from latex, known as Havea Brasillensis.
- How can Malaysia improve rubber production?
- Wider coordination between key stakeholders is crucial to improve rubber production. The rubber industry is one of the largest contributors to Malaysia's GDP and is economically important for the country. However, production has been declining over the last few decades. Similarly, this has also occurred in other crops such as cocoa.
- Why is Malaysia's rubber price falling?
- The Malaysia Rubber Board (MRB) says that since February 2016 the country's rubber price is the international market price and the drop in rubber prices was due to changing demand for global rubber. With the spread of the Covid-19, demand from major natural rubber consumer countries such as China is declining (Malaysia Rubber Board, 2020).
- How much rubber is produced in Malaysia?
- In Malaysia, however, the production declined over the same time period by 46%, from 1.3 million tons to 0.6 million tons (MRB, 2020). Malaysia, which used to be the leading rubber producing country during 1960s, is now the seventh-largest rubber producer (Barlow, 1978; Barlow et al., 2014; MRB, 2020).
- Why is there a lack of labour in the rubber industry?
- Though lack of labour has been cited, the real reason is the low price. The latest figure suggests production may have dropped to less than 400,000 tonnes. This has forced many processing factories to close down. Rubber product manufacturers turn to import to replenish supply. A big drain on our foreign exchange.
