Malaysia aims to become top rubber products maker
Malaysia aims to become top rubber products maker
KUALA LUMPUR (AFP): Malaysia, the world's third largest
natural rubber producer, wants to become a top rubber products
manufacturer to cut its imports bill, officials said Wednesday.
The country imported some 850 million ringgit (US$223.68
million) worth of rubber products in 1998 and the figure is
expected to rise to 900 million this year, said Malaysian Rubber
Board chairman Alladin Hashim.
"With this very high import value, we have the opportunity for
import substitution," Alladin told a press conference after
opening a meeting on the industry.
"We intend to be the leader in the value-added manufacturing
of rubber products."
Alladin said local rubber products used in the construction
sector failed at present to meet required standards.
From next year, he said the board would help small- and
medium-size industries in research and development to widen their
product range, cut production costs and boost efficiency.
"The success in import substitution will provide a stronger
foundation for Malaysian manufacturers in the domestic market as
well as enhancing their export potential," he added.
Officials said Malaysia's rubber industry accounted for 13
billion ringgit or 4.5 percent of total export earnings. Alladin
said the board has targeted export earnings of 15 billion by
2005.
Now that Malaysia had withdrawn from the International Natural
Rubber Organization (INRO), he said, the government would have to
develop its own mechanism to protect the industry. He declined to
elaborate.
INRO, the world's last commodity agreement with economic
influence, wound up in October following the withdrawal of
Thailand and Malaysia.
Lim Keng Yaik, primary industries minister, was quoted last
month as saying that Malaysia, Thailand and Indonesia hoped to
set up a consortium to buy about 140,000 tons of rubber on the
international market to stabilize prices.
The INRO council is to meet from December 13 to 17 to consider
future international cooperation and plans to dispose of its
buffer stock.