KL, Bangkok join hands to stabilize rubber prices

KL, Bangkok join hands to stabilize rubber prices

KUALA LUMPUR (AFP): Malaysia and Thailand will set up a joint
minister committee to intervene in domestic markets to help
stabilize falling rubber prices, reports said Wednesday.

The joint effort will be a fore-runner to possible regional
cooperation, with the two countries to make overtures to
Indonesia soon, the New Straits Times daily reported.

Once Indonesia agrees, this tripartite arrangement will have
the combined clout of the world's three largest rubber producers,
accounting for almost 80 percent of global output.

Malaysian Primary Industries Minister Lim Keng Yaik was cited
as saying that joint efforts was necessary in view of the
anticipated demise of the International Natural Rubber
Organization (INRO).

"We feel that the three biggest rubber producing countries
should have a common stand," he said but denied that this was
tantamount to creating a cartel.

Following a meeting with Thai Agriculture and Cooperatives
Minister Newin Chidchob on Tuesday, Lim said the two countries
would sign a memorandum of understanding on the joint committee
in August in Chiengmai.

The committee will coordinate domestic market interventions,
manage a joint buffer-stock, as well as facilitate technical
cooperation and exchange of research findings and market
intelligence.

It will determine how to manage the rubber stocks, the types
of stocks to withhold and how, when and where to dispose them,
Lim said, adding that Indonesia would be invited to join the
plan.