SHAH ALAM: The Ministry of Primary Industries is seeking a bigger allocation under the 12th Malaysia Plan (2021-2025) (12MP) to further drive the nation’s commodities industry. Calling for industry players to come forward with their inputs, its minister Teresa Kok said the bigger allocation was needed as the industry had been contributing the bulk of the country’s revenues.
“We are the one that pushes local commodities to be exported to gain more export revenues. But, more often than not, the allocation given to us is not enough and not enough attention is being paid to the ministry,” she said at the Malaysian Rubber Products Manufacturers’ Association (MRPMA) Rubber Industry Conference 2019 here yesterday.
She added that currently, the ministry was looking at different industries to identify their needs and would welcome inputs from the industry players to help the ministry in preparing proposals for the 12MP.
Elaborating on the industry’s contributions to the country’s coffer, Kok said manufactured rubber products recorded export earning growth of 9.6 per cent to RM23.71 billion in 2018 from a year before. The export revenue for tyres stood at RM1.32 million last year, while Industrial Rubber Goods (IRG) and General Rubber Goods’ (GRG) revenues amounted to RM1.37 billion and RM1.32 billion, respectively.
Meanwhile, total revenue for non-latex based rubber products was at RM4.4 billion.
She said the industry had done remarkably well in 2018 despite challenges due to the withdrawal of natural gas subsidies, rising cost of natural gas and utilities, foreign workers saga and the US-China trade war.
“The domestic market has also been eroded with the influx of rubber products from overseas,” she said, adding that rubber import amounted to RM8.35 billion in 2018.
Kok said tyres import alone was worth RM2.7 billion, mainly from markets like China, Thailand and Indonesia.
Meanwhile, IRG and GRG’s imports stood at RM1.21 billion and RM1.26 billion, respectively.
All these segments made up 62 per cent of rubber imports by Malaysia, said Kok.
Meanwhile, MRPMA president Datuk Dr Ong Eng Long said the Malaysian rubber industry was mostly driven by medical glove segment. – Bernama
