At the specialized seminar “Rubber Product Manufacturing – Opportunities and Challenges for Natural Rubber (NR)”, jointly organized by the Rubber Authority of Thailand (RAOT) and the International Rubber Research and Development Board (IRRDB) in August, experts emphasized the need to strengthen cooperation with global natural rubber users. The ASEAN region, they noted, has the potential to revolutionize the NR industry and ensure sustainability for the benefit of both producers and consumers.
The Paradox in ASEAN’s Natural Rubber Producing Countries
Research reveals that the proportion of rubber used domestically in ASEAN producers remains below 20%. Most of the rubber harvested is exported in raw form, while these same countries import large volumes of finished rubber goods. Persistently low raw rubber prices have raised serious concerns among producers. Many rubber farmers are struggling with low profits, prompting some to shift to more lucrative crops.
In Malaysia, less than half of the country’s one million hectares of rubber plantations are currently tapped. Many smallholders have switched to oil palm or durian cultivation. A similar trend is seen in Indonesia, where Pestalotiopsis leaf disease has significantly reduced yields. In Thailand, less than half of the replanting subsidies for rubber have been used for actual replanting, with many farmers opting for commercial crops like durian instead. Meanwhile, the Philippines has begun paying serious attention to developing its downstream rubber industry.
ASEAN countries represent the majority of the world’s natural rubber producers. With the exception of Brunei and Singapore, every ASEAN member cultivates rubber. Other major producers include Sri Lanka, India, China, Côte d’Ivoire, and some Latin American nations. Even Brazil, the birthplace of rubber, is expanding cultivation in areas free of the devastating South American Leaf Blight (SALB).
However, India and China still face domestic shortages and must import natural rubber. Malaysia, once a major exporter, is now rapidly becoming a net importer. In the glove manufacturing sector, which flourished during the pandemic, much of the latex used comes from imports, including cup lump rubber from Africa. This shows Malaysia’s processing industry has become dependent on foreign supply to sustain operations.
Strengthening Collaboration for a Sustainable Rubber Products Industry
The declining profitability of rubber farming is now one of the most pressing challenges for the sector. If smallholders continue abandoning rubber cultivation, global supply stability will be threatened—causing ripple effects for major tire manufacturers. This explains why many global tire brands are investing directly in rubber plantations to secure future supply.
Yet, with its population nearing 700 million, ASEAN is itself a vast potential market for finished rubber products. The region possesses strong foundations to develop a large-scale rubber product manufacturing industry. However, it is essential that a fair share of profits be reinvested in supporting smallholders, ensuring equitable and sustainable growth.
Advancing technology and innovation will also be critical to modernizing production, attracting investment, and improving competitiveness. Above all, closer cooperation between ASEAN producers and global NR users will be key to transforming and sustaining the natural rubber industry for decades to come.