Malaysia may quit rubber body

Malaysia may quit rubber body

KUALA LUMPUR (AP): Malaysia may quit the International Natural
Rubber Organization if Thailand does, a newspaper said yesterday.

The Sunday Star quoted Primary Industries Minister Lim Keng
Yaik as saying that if both countries pull out, it could lead to
a price increase for natural rubber.

He said he had information that Thailand might pull out of the
organization.

"This would not affect our rubber industry as natural rubber
accounts for only 2.7 billion ringgit (US$700 million) of total
revenue compared to rubber products, which bring in 4.5 billion
($1.2 billion) yearly," he said.

Furthermore, Malaysia was moving into rubber forest
plantations, where timber is the primary product and latex is
only a secondary product, Lim told reporters in Johor Bahru, 360
kilometers (228 miles) south of Kuala Lumpur.

He said a ministerial meeting of the rubber-producing
countries in the Association of Southeast Asian Nations would be
held soon to discuss problems within the industry.

Natural rubber produced by Malaysia, Thailand and Indonesia
accounts for about 50 percent of the world's production.

Lim said the refusal of natural rubber consumer countries to
renegotiate intervention rates was totally unacceptable because
the price of natural rubber was ridiculously low.

"If consumer countries are not responsive to a fair and
remunerative price, then we will call off the buffer stock
mechanism and allow a price increase," he said.