MALAYSIA'S RUBBER PRODUCT EXPORTS TO HIT US$4.8 BLN IN 2011

KUALA LUMPUR, July 26 (Bernama) -- Malaysia's exports of rubber products are
likely to increase by about 11 per cent or RM2 billion (aboutUS$700,000) to
RM14.4 billion (US$4.8 billion) this year from RM12.96 billion (US$4.32
billion)in 2010 due to higher prices and output.

Deputy Plantation Industries and Commodities Minister Datuk G. Palanivel
said production for the first six months of 2011 rose to 480,000 tonnes from
450,000 tonnes during the same period last year.

"It is estimated that by 2020, the export revenue derived from the
integrated rubber industry will reach more than RM98 billion (US$32.66
billion)," he told reporters after launching the International Rubber Economic
Conference 2011 here Tuesday.

He said export earnings had increased by 36 per cent to RM34 billion in
2010 from RM25 billion in 2009 due to continued firm regional demand and
stronger natural rubber prices.

Present at the press conference were Malaysian Rubber Board (MRB) Chairman
Ahmad Hamzah and Director-General Datuk Dr Salmiah Ahmad.

Palanivel said demand for natural rubber was estimated to grow at a modest
pace this year at 3.8 per cent to 11.149 million tonnes due to anticipation of
slower growth of the global economy.

He said under the National Key Economic Area (NKEA), it was projected that
the Malaysian rubber industry would contribute RM52.9 billion to Gross National
Income by 2020 compared to RM20 billion last year.

To meet the strong demand for the commodity, Palanivel said the government
wanted to increase the rubber yield per hectare with research and development
via MRB.

Under the NKEA, he said, four entry points projects had been identified for
implementation which include maintaining the rubber tappable area of one million
hectares while increasing yield improvement to two tonnes per hectare by 2020.

Meanwhile, Dr Salmiah said rubber prices should stabilise around RM13.50 per
kg (US$4.3).