The rubber and Rubber products sector in 2021 improved performance with the total export reaching a record high of RM71 billion, increased by 46.3% compared to RM48.5 billion in 2020.
Malaysian Rubber Council (MRC) in a statement said that In 2021, latex goods contributed 91.8% to the total rubber products exports with rubber gloves remaining the leader of the pack, contributing to 88.9% to the total rubber products export at RM54.8 billion, an increase of 55.4% over the same period in 2020 at RM35.3 billion.
“This is followed by Industrial Rubber Goods (IRG), an increase of 40.7% amounting to RM1.3 billion compared to the same period in 2020 at RM0.9 billion. Export of tyres showed an increase of 30.7% at RM1.7 billion, compared to RM1.3 billion in 2020, while Footwear and General Rubber Goods recorded an increase of 19.6% and 13% respectively. Other latex (non-gloves) products indicated lower growth at 7.3% as strong expansion in latex thread (47.4%) are offset by contractions in catheters, condoms, and foam products,” MRC said.
On Consumption, MRC said that the United States, Europe, and Japan dominated the consumption market of rubber products, accounting for about 50%.
Last year, the United States imported RM22.8 billion worth of Malaysian rubber products, an increase of 76.5%. Germany imports amounting to RM3.79 billion (57.9%), Japan RM3.2 billion (40.5%), Netherlands at RM1.76 billion (57%) and Italy at RM1.2 billion (42.2%) as compared to 2020. Other major countries such as Canada, which showed an increase of 70.1% and Brazil (52.8%) are catching up.
“We will also seek for new markets in countries such as India, Africa, and Latin America, in addition to United States and Europe, because of their greater populations and promising commercial prospects,” said Nor Hizwan Ahmad, Malaysian Rubber Council (MRC) CEO.
As global populations grow rapidly and healthcare expenditure is indicating an upward trend, it is thus predicted that these countries will become a major force in driving future market expansion.
“The demand is largely driven by the global annual consumption of medical examination and surgical gloves from the healthcare industries, as well as the greater demand of cleanroom gloves from manufacturing industries,” said Hizwan.
On the outlook for 2022, Hizwan said that MRC is driving market expansion through global and domestic promotion, commercialisation and investment, capacity building, and talent development.
Among of the activities outlined to enhance the visibility of Malaysia Rubber products globally include participation in international trade shows, working visits, business matching, international seminars, ministerial missions, and conferences.
The most recent participation was during the Arab Health Exhibition held from January 24-27, 2022, in Dubai, United Arab Emirates, in which MRC has successfully facilitated 98 business matches with prospective buyers with total sales of RM110.5 million.
Hizwan also highlighted the importance of participating in such events to promote sustainable Malaysian rubber products as well as to enhance the awareness of the international market on the high quality of our products.
According to Hizwan, it is timely for the rubber products industry to plan and implement a growth strategy beyond the pandemic. “MRC is looking into new ventures based on the market demands. For example, engineered rubber products (ERP) including seismic bearings can be promoted to countries affected by earthquakes such as Indonesia, Turkey and Egypt,” he added.
He also added that retreading materials and rubber automotive components can be promoted to countries where the automotive industry is growing. “Vietnam and Brazil are among the countries that can adopt our tyre retreading solutions for their commercial vehicles.” he said.
“Pakistan is also a market that can be penetrated as their healthcare industry is showing growth, hence, opportunity for us to further promote our rubber medical devices such as medical gloves and foley catheters,” said Hizwan.
