The Malaysian rubber products industry manufactures tyre and tyre-related products, latex products, and industrial and general rubber products. There are more than 500 manufacturers in this industry. The key natural rubber consuming industries, last year, comprised rubber gloves, rubber thread, and tyres and tubes industries. The total consumption of these three industries comprises 88.6% of the entire domestic consumption of natural rubber. The swift growth of the industry has made Malaysia the largest consumer of natural rubber latex in the world.
The latex products sub-sector is the largest sub-sector in the rubber products industry and includes more than 160 manufacturers producing medical, household and industrial gloves, latex threads, catheters, balloons, finger stalls and foam products. This sub-sector contributed 72% to the total value of exports, mainly contributed by gloves, latex threads, and catheters. The country continues to uphold its position as the world's leading producer and exporter of latex threads, catheters, and natural rubber medical gloves, contribute more than 80% of the world market for catheters, 70% for latex threads, and 60% for rubber gloves.
There are at present, about 126 companies in the tyres and tyre-related products sub-sector containing nine tyre producers, while the remaining companies manufacture retreads, tyre treads for retreading, and valves. There are three leading tyre producers manufacturing passenger car tyres, earthmover tyres, and commercial vehicle tyres.
The industrial and general rubber products sub-sector includes 194 companies manufacturing an extensive variety of rubber products like beltings, hoses, mountings, tubing, seals, and sheeting for the electrical & electronics, automotive, machinery & equipment and construction industries, mainly for the domestic market.
There is a need for the rubber products industry to expand further, stressing on high value-added and high technology rubber products, like products for construction, engineering, and marine applications. More R&D work needs to be embarked upon in product development and down-stream activities.
The government continues to endorse the development of Malaysia's resource-based industries to expand the nation's sources of growth. Apart from fiscal incentives, which are available presently for promoted products and activities, the government has further modified the incentives to promote precise activities, among which is the rubber products industry. To further promote investments in resource-based industries, regional companies in the rubber industry that reinvest to develop their projects are eligible for Pioneer Status or Investment Tax Allowance.
Last Updated on: 18-11-2009
