KL plans rubber price talk

KL plans rubber price talk

KUALA LUMPUR (AFP): Malaysia will initiate talks with Thailand and Indonesia to jointly map out new strategies to boost rubber prices, which remain at 30-year lows, officials said Tuesday.

Primary Industry Minister Lim Keng Yaik is to make a three-day visit to Bangkok from Thursday, where he will meet Thai Deputy Minister of Agricultural and Cooperatives Arkom Angchoun, an aide told AFP.

"They will sign a memorandum of understanding on Friday to enhance bilateral cooperation in the rubber industry," he said.

The two leaders will also discuss ways to persuade Indonesia to join forces to halt flagging rubber prices following the failure of the International Natural Rubber Organization (INRO), he added.

Thailand is the world's largest rubber producer, followed by Indonesia and Malaysia. The three countries account for almost 80 percent of world production.

Both Malaysia and Thailand have announced their intention to leave INRO, claiming the organization had failed to stabilize rubber prices despite substantial contributions from members.