Malaysia’s Ministry of Plantation and Commodities has urged the Malaysian Rubber Board (MRB) to develop a consolidation program aimed at redeveloping abandoned rubber plantations, with the goal of reducing the country’s dependence on imported natural rubber.
Minister Datuk Seri Johari Abdul Ghani said the ministry has identified approximately 420,000 hectares of abandoned rubber plantations nationwide, representing a potential production capacity of more than 550,000 tonnes of rubber.
“We have identified all these abandoned rubber plantations. However, two key issues persist: smallholders are reluctant to relinquish their land, and many plantations are overgrown with weeds and shrubs,” Johari said during the opening of MRB Technology Day 2024.
“If we can produce 800,000 to one million tonnes of rubber domestically, we can significantly cut our dependence on imported natural rubber — indirectly reducing the outflow of foreign exchange.”
Goal: Reduce Rubber Import Dependence by 50%
Johari emphasized that, if implemented successfully, the program could enable Malaysia to reduce its dependence on imported natural rubber by up to 50% within 10–15 years.
“Last year, we imported around RM 6 billion worth of natural rubber. With this consolidation program, we could reduce that by at least half — or even more,” he added.
MRB Technology Day 2024 – 99 Years of Rubber Research
The MRB Technology Day 2024, held under the theme “99 Years of Rubber Research,” showcased Malaysia’s latest innovations and technological advancements in the rubber industry.
The event gathered industry stakeholders, smallholders, licensed producers, and representatives from across the rubber supply chain.
Programs included the Smallholder Rubber Seminar, Rubber Conference, and the National Rubber Economics Conference 2024, which discussed current industry challenges and opportunities.
China Expands Tyre Manufacturing in Serbia
In a related development, Chinese tyre manufacturer Linglong Tire announced plans to invest USD 645 million (EUR 590.7 million) to expand production at its Zrenjanin plant in northern Serbia, to meet rising European demand.
The expansion aims to increase annual output by 1.1 million high-performance radial tyres.
Linglong began constructing its Serbian factory in April 2019, when the Serbian government confirmed an initial EUR 800 million investment, expected to create 1,200 jobs and achieve a 13 million tyres annual capacity.
According to SeeNews, the new expansion — covering 87,903 square meters — will include a 24 MW photovoltaic power plant, with total investment estimated at USD 192.8 million in capital expenditure.