KUALA LUMPUR: The Malaysian Rubber Board (MRB) is optimistic that the setting up of the Regional Rubber Market (RRM) would help lift rubber prices, said its director-general Datuk Dr Mohd Akbar Md Said.
The Regional Rubber Market could represent 80% of the world’s natural rubber output, as Vietnam is showing interest to be a partner. The AFP photo shows the white liquid sap of a rubber tree falling into a container in Thailand.
The RRM, comprising the world’s three largest natural rubber (NR) producers – Thailand, Indonesia and Malaysia – could boost rubber prices, which are currently greatly influenced by external factors, he said.
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In fact, he said, with Vietnam showing an interest in becoming a strategic partner, the RRM could represent 80% of the world’s NR output.
“Rubber prices are at the moment influenced by purchasing countries as well as the weak global economy and low crude oil prices.
“The RRM could not only give competition to other countries but also help to boost rubber prices,” he told reporters after the Standard Malaysian Rubber (SMR) golden jubilee celebrations in Kuala Lumpur on Tuesday.
The event, to celebrate SMR’s establishment in 1965, was officiated by Plantation Industries and Commodities Ministry’s deputy secretary-general Datuk M. Nagarajan on behalf of the minister, Datuk Douglas Uggah Embas.
Also present was MRB chairman Datuk Wira Ahmad Hamzah.
Mohd Akbar said the RRM, which is still under discussions, was expected to be operational by the middle of next year.
“The countries involved in the talks have six months to carry out studies before any decision on setting up the market is made,” he said.
On another matter, he said the MRB expected rubber prices to rise next year from the current level of below RM5 a kg, driven by a reduction in rubber production to between 700,000 and 800,000 tonnes due to replanting of rubber trees nationwide.
In the first 11 months of this year, the country’s rubber production stood at about 700,000 to
