Malaysia must leverage its global leadership in glove manufacturing by shifting towards eco-friendly tires and sustainable “green rubber” products to stay ahead in the long term — said Datuk Dr. Zairossani Mohd Nor, Director-General of the Malaysian Rubber Board (MRB).
Rubber Industry Remains Optimistic Despite Challenges
Dr. Zairossani emphasized that relevant agencies must support Malaysia’s goal of maintaining its top position as a global producer of rubber gloves, technical rubber goods, and industrial rubber products. By focusing on high value-added and sustainable manufacturing, Malaysia can ensure long-term competitiveness and industry resilience.
However, the sector faces headwinds from geopolitical tensions (Russia–Ukraine war), rising energy costs, higher interest rates, and tightened financial conditions worldwide, all of which make 2023 a challenging year for the rubber industry.
During the COVID-19 pandemic, Malaysia’s rubber sector benefitted from skyrocketing global demand for medical gloves, pushing export value to a record RM 81 billion in 2021. After this peak, glove exports declined sharply to RM 19 billion in 2022, following market oversupply. Despite the drop, rubber gloves remain the largest export item, accounting for about 40% of total industry export revenue. Other major exports include foam products, catheters, condoms, tires, automotive components, and sports equipment.
Zairossani remains optimistic, expecting the industry to perform better than the pre-pandemic period. Global rubber demand, which slightly decreased last year, is forecast to grow 2.6% in 2023, driven mainly by China’s economic reopening, Malaysia’s largest export market.
Balancing Supply and Demand for Long-Term Sustainability
Malaysia aims to capture emerging markets and support smallholders adapting to changing market conditions to boost productivity and profitability. “Malaysia has always produced high-quality rubber products, and we must capitalize on that strength by accelerating commercialization and global branding,” said Zairossani.
Over the past three years, smallholder rubber farmers have struggled with low prices and income instability. To address this, the government introduced incentive schemes that encourage continuous tapping and sustainable rubber production.
Malaysia is currently facing a shortage of raw rubber, leading the government to launch programs supporting latex production, price stabilization mechanisms, and technological transfer initiatives. These include the adoption of high-yield rubber clones, latex stimulants, and modern tapping systems to enhance productivity.
Zairossani reaffirmed MRB’s mission to modernize the Malaysian rubber industry, focusing on sustainability, competitiveness, income growth for smallholders, and the production of high-value exports to ensure the sector remains a key contributor to the national economy.