The Malaysian rubber products industry is made up
of more than 510 manufacturers producing latex products;
tyres and tyre-related products; and industrial and
general rubber products. The industry employed more
than 68,700 workers and contributed RM10.58 billion
to the country's export earnings in 2007. Rubber products
accounted for 1.7 per cent of Malaysia? total exports
and 2.3 per cent of Malaysia exports from the manufacturing
sector.
Malaysia's natural rubber production in 2007 amounted
to 1.20 million tonnes compared with 1.28 million
tonnes in 2006. The major natural rubber consuming
industries for 2007 were rubber gloves 63.8%, rubber
thread 13.0% and tyres and tubes 11.8%. The total
consumption of the three industries constitutes 88.6%
of the overall domestic consumption of natural rubber.
The rapid growth of the industry has enabled Malaysia
to become the world's largest consumer of natural
rubber latex.
The latex products sub-sector is the largest sub-sector
within the rubber products industry and comprises
163 manufacturers producing medical, household and
industrial gloves, catheters, latex threads, balloons,
finger stalls and foam products. This sub-sector accounted
for 72 per cent of the total value of exports, largely
contributed by gloves, catheters and latex threads.
Malaysia continued to maintain its position as the
world's leading producer and exporter of catheters,
latex threads and natural rubber medical gloves, supplying
more than 80 per cent of the world market for catheters,
70 per cent for latex threads and 60 per cent for
rubber gloves.
There are currently 126 companies in the tyres and
tyre-related products sub-sector comprising nine tyre
producers while the remaining companies produce retreads,
tyre treads for retreading, valves and other accessories.
There are three major tyre producers producing passenger
car tyres, commercial vehicle tyres and earthmover
tyres, and another six manufacturing other types of
tyres. Exports value of rubber tyres, flaps and inner
tubes in 2007 amounted to RM891.6 million.
The industrial and general rubber products sub-sector
comprises 194 companies producing a wide range of
rubber products such as mountings, beltings, hoses,
tubings, seals, and sheetings for the automotive,
electrical & electronics, machinery & equipment
and construction industries, largely for the domestic
market.
The rubber products industry will need to diversify
further, emphasising on high value-added and high
technology rubber products, such as products for engineering,
construction and marine applications.?s outlined in
the IMP3, more R&D efforts need to be undertaken
in product development and downstream activities.?ew
areas for promotion would include the extraction of
biochemical products from latex using biotechnology.?hese
efforts will ensure the continuous improvement in
the products quality to maintain competitiveness in
the export market.
The government continues to promote the development
of Malaysia's resource-based industries to diversify
the country's sources of growth. In addition to fiscal
incentives which are currently available for promoted
products and activities, the government has further
fine-tuned the incentives to promote specific activities
among which is the rubber products industry. To further
encourage investments in resource-based industries,
local companies in the rubber industry that reinvest
to expand their projects are eligible for Pioneer
Status or Investment Tax Allowance.
