Industries in Malaysia
The Malaysian rubber products industry is made up of more than 500 manufacturers producing latex products; tyres and tyre-related products; and industrial and general rubber products. The industry contributed 18.1 billion to the country's export earnings in 2011.
Rubber products accounted for 3.9 per cent of Malaysia's total exports for manufacturing products.
Malaysia's natural rubber production in 2011 amounted to 996,210 tonnes compared with 939,241 tonnes in 2010. The domestic consumption of natural rubber for 2011 was 401,923 tonnes. The natural rubber consuming industries for 2011 were latex products (80.3%), tyres (9.2%), general rubber products (7.2%), industrial rubber products (3.2%) and others (0.2%). The rapid growth of the industry has enabled Malaysia to become the world's largest consumer of natural rubber latex.
The latex products sub-sector is the largest sub-sector within the rubber products industry and comprises 125 manufacturers producing gloves, condom, catheters, latex thread and others. This sub-sector accounted for 81 per cent of the rubber total value of exports, largely contributed by gloves, catheters and latex threads. Malaysia continued to maintain its position as the world's leading producer and exporter of catheters, latex threads and natural rubber medical gloves.
There are currently 120 companies in the tyres and tyre-related products sub-sector comprising nine tyre producers while the remaining companies produce retreads, tyre treads for retreading, valves and other accessories. There are three major tyre producers producing passenger car tyres, commercial vehicle tyres and earthmover tyres, and another nine manufacturing other types of tyres. Exports value of rubber tyres, flaps and inner tubes in 2011 amounted to RM779.3 million.
The industrial and general rubber products sub-sector comprises 185 companies producing a wide range of rubber products such as mountings, beltings, hoses, tubings, seals, and sheetings for the automotive, electrical & electronics, machinery & equipment and construction industries, largely for the domestic market.
The rubber products industry will need to diversify further, emphasising on high value-added and high technology rubber products, such as products for engineering, construction and marine applications. Under the Palm Oil and Rubber NKEA, four EPPs are being implemented including accelerating downstream activities and commercialising new rubber products. The rubber industry is targeted to contribute RM52.9 billion to the GNI by 2020.
The government continues to promote the development of Malaysia's resource-based industries to diversify the country's sources of growth. In addition to fiscal incentives which are currently available for promoted products and activities, the government has further fine-tuned the incentives to promote specific activities among which is the rubber products industry. To further encourage investments in resource-based industries, local companies in the rubber industry that reinvest to expand their projects are eligible for Pioneer Status or Investment Tax Allowance.
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