GOVT EYES MORE PRIVATE INVESTMENTS IN RUBBER & RELATED INDUSTIES

KUALA LUMPUR, Sept 3 (Bernama) -- The government aims to attract more private
investments in the rubber and its related industries as the sector is important
for the country amid its bullish outlook.

Minister of International Trade and Industry, Mustapa Mohamed, said exports of
rubber and its related products jumped 30 per cent to RM9.23 billion in the
first half of 2010 from RM6.9 billion in the same period last year.
(US$1=RM3.12)

"So far in 2010, RM425.8 million in investments, mainly domestic, have been made
specifically by the rubber glove segment," he said after a dialogue session with
industry representatives here Friday.

Mustapa said by 2020, the rubber glove industry was expected to generate RM30
billion in revenue from RM10 billion now.

He said Thailand, Indonesia and Malaysia remained the top rubber producers in
the world.

"Therefore, the government is committed to develop the rubber and
rubber-based industry and make Malaysia the favourable destination for private
investments, both for domestic and foreign investors," he said.

On claims of an influx of imported tyres and under-declaration of the value, he
said the ministry would set up a task force to investigate them.

"We want to get to the bottom of the issue as it is serious and unfair to the
industry," he said.

Mustapa said the task force would be headed by the ministry and would include
representatives from the Customs Department, finance and transport ministries.

On natural gas supply, he said the ministry was still working with the Economic
Planning Unit.

"One of the options considered is importing natural gas, which needs some
specific infrastructures and may take a year or two to construct," he said.

He said domestic gas production was mostly tied to long-term contracts with
Japan and South Korea.

"We have to do this as soon as possible amid increasing demand for gas.

"The demand is high due to it being heavily subsidised and when the
rationalisation happens it will lessen consumption," he said.
-- BERNAMA