The Malaysian Rubber Export Promotion Council (MREPC) expects a positive growth of rubber products exports in 2020 due to the increased capacity and production from the COVID-19 outbreak as well as new investments in the dry rubber sector, including tyres, automotive parts and industrial goods.The rebound could be similar to the SARS (Severe Acute Respiratory Syndrome) outbreak previously, which led to an increase in exports of rubber gloves by 8% year-on-year in 2003.
Despite the negative export trend to China in 2019, where total exports of rubber products fell 2.1% to MYR 21.2 billion from MYR 21.6 billion recorded for the same period in 2018, MREPC said the rubber products industry will nevertheless capitalise on the growing demand and intensify its promotional activities in the country to enhance awareness of Malaysian products. The MREPC Strategic Plan 2021-2025 has identified key products to be prioritised by the council: the products include rubber gloves, other medical devices such as condoms and catheters, engineered rubber products, automotive products such as precured treads, and foam products. Aside from five core strategies listed to enhance exports of rubber products, the MREPC has also predicted improvements in economic performance in emerging markets in Latin America, the Middle East and Europe.
Concerning the automotive sector, the MREPC will facilitate joint ventures and partnerships in automotive parts production; conduct an export pathfinder programme; increase domestic market share of small and medium enterprises’ products; and assist new companies and start-ups to grow/export. With the strategies, the council is confident that its set export target of MYR 34 billion by 2025 for Malaysian rubber products is achievable.