Malaysia aims to reclaim its position as the world’s leading rubber producer by 2035 through large-scale replanting, innovation, and sustainable development initiatives.
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Kuala Lumpur (CSVNO) – Malaysia has set an ambitious goal to regain its position as the world’s top rubber producer within the next decade, Deputy Prime Minister Dr. Ahmad Zahid Hamidi announced at the 2025 RISDA Field Officers Conference. He emphasized that comprehensive replanting and technological modernization will be key to revitalizing the nation’s rubber industry.
Replanting and Automation at the Core of Revival
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Out of Malaysia’s 800,000 hectares of rubber plantations, around 400,000 hectares require replanting. Dr. Zahid highlighted the importance of high-quality seedlings and automated tapping systems to boost productivity and sustainability.
He also underscored plans to enhance the value of rubberwood, encouraging its wider use in treated furniture manufacturing to increase downstream value and reduce government financial dependency for the Rubber Industry Smallholders Development Authority (RISDA).
Acknowledging Malaysia’s current drop to 10th place among global rubber producers, Dr. Zahid expressed confidence that innovation, technology, and sustainable practices could restore the country’s leadership.
“With dedication and commitment, Malaysia can once again lead the global rubber industry,” he affirmed.
Investment Projects in Sabah to Spur Growth
The Sabah Rubber Industry Board (LIGS) is spearheading industrial development to strengthen Malaysia’s rubber sector. The agency plans to develop 40 hectares of land within the Bongawan Rubber Industrial Estate into a rubber cement production facility with a capacity of 100 tons per year, following recommendations from the Malaysian Rubber Research Institute.
The project is expected to create 60 local jobs and attract private investment to complement government funding.
Deputy Prime Minister and Minister of Agriculture and Fisheries Datuk Seri Jeffrey Kitingan stated that LIGS has completed a feasibility study as part of the first phase of the 13th Malaysia Plan, which is projected to benefit 1,000 residents through new economic opportunities and an expanded rubber value chain.
He estimated that the wider development could generate RM 40 million (USD 8.5 million) annually for the Sabaheconomy.
Expanding Land and Attracting Investors
LIGS currently controls 3,256 hectares of land in Bongawan and will add another 2,000 hectares in 2026 under Land Ordinance Code 28, according to Kitingan.
The agency plans a phased development approach, offering incentives for potential investors to build facilities across the area.
“In 2024, LIGS allocated RM 1.5 million for land surveys, and in 2025, we are investing RM 2.5 million to develop 202 hectares of rubber plantations employing 60 local workers,” Kitingan added.
A 4.8-hectare plot within the estate has already been allocated to Felcra Berhad under a prior agreement between the Sabah state government and the agency.
Toward a Sustainable and Competitive Future
Malaysia’s vision to reclaim global leadership by 2035 reflects a strategic commitment to modernize production, integrate advanced technologies, and improve the economic resilience of rural smallholders.
If successfully implemented, these initiatives could strengthen Malaysia’s position not only as a rubber producer, but also as a hub for sustainable and high-value rubberwood industries, driving long-term socio-economic growth in regions such as Sabah and Peninsular Malaysia.