$TOPGLOV (7113.MY)$ KUALA LUMPUR: The Malaysian Rubber Counc...

KUALA LUMPUR: The Malaysian Rubber Council (MRC) has projected that the exports of rubber and rubber products could exceed RM30 billion by end of the year.

This was based on the performance in the first half of 2024 (1H2024).

"This strong outlook is supported by the sector's impressive 1H2024 results, which highlight the industry's resilience and ability to adapt to global market trends," MRC said today.

In 1H2024, Malaysia's exports of rubber and rubber products rebounded significantly to RM15.5 billion, an increase of 16.3 per cent over the same period in 2023.

Of this, rubber products accounted for 70.5 per cent or RM10.9 billion, while rubber exports contributed RM4.6 billion, reflecting substantial year-on-year growth of 29.4 per cent.

The rubber products sector is made up of latex products, industrial rubber goods, general rubber goods, footwear, tyres and inner tubes.

Rubber gloves remained the largest contributor, accounting for 62.5 per cent of the total rubber products exported, with exports reaching RM6.8 billion in 1H2024 compared with RM5.8 billion in 1H2023, a promising 16.7 per cent growth.

Medical gloves alone contributed RM5.0 billion, reflecting a 15.7 per cent growth due to continued global demand for high-quality Malaysian gloves, particularly from the healthcare sector.

MRC said as the second most exported rubber product, tyres, predominantly new pneumatic tyres saw varied performance across markets in 1H2024.

Exports to Brazil showed a strong 22.5 per cent increase but overall tyre exports slightly decreased by 1.7 per cent, totalling RM962.8 million.

Apart from gloves, other latex products such as rubber catheters and latex threads saw notable performance, with exports of catheters rising by 15.8 per cent to RM298.1 million and latex threads increasing by 15.5 per cent to RM282.5 million in 1H2024.

Malaysia's exports of industrial rubber goods and general rubber goods showed positive growth in 1H2024.

Industrial rubber goods saw a 6.7 per cent increase, totalling RM933.9 million, while general rubber goods grew by 5.1 per cent to reach RM854.2 million.

Exports of footwear also recorded a 5.6 per cent increase, contributing RM364.9 million to the total export value.

The United States continued to be the largest export market for Malaysian rubber products.

It accounted for 31.4 per cent of the total rubber products exports, with a total value of RM3.43 billion, marking a significant 23.1 per cent increase from the same period in 2023.

The demand for rubber gloves in the United States remained strong, contributing significantly to this growth.

"The recent tariff adjustments by the United States on Chinese-made rubber medical and surgical gloves present a significant opportunity for Malaysian glove manufacturers to expand their global footprint.

"Malaysian glove manufacturers have long been recognised for their high-quality, sustainable products, and this development further enhances their competitive positioning on the global stage," said Muhammad Eizaaz Muhammad Redzuan, chief executive officer of MRC during the 11th International Rubber Glove Conference Exhibition 2024 here recently.

"With over 35 per cent of Malaysia's rubber glove exports directed to the US, this policy change will not only bolster our manufacturers' market share but also underscore the resilience and reliability of Malaysia's rubber glove industry," he added.

Other key export destinations for Malaysia's rubber products during 1H2024 included China, with exports valued at RM593.1 million (5.4 per cent share, up 3.9 per cent), Japan at RM586.4 million (5.4 per cent share, down 2.4 per cent), Germany at RM581.0 million (5.3 per cent share, up 25.3 per cent) and Singapore at RM470.1 million (4.3 per cent share, up 0.1 per cent).

Germany's rubber product imports from Malaysia experienced a sharp rise, with a 25.3 per cent increase, driven by higher demand for medical and industrial rubber products.

China also showed steady growth, further solidifying its position as one of Malaysia's key trading partners.