Rubber Product Exports Reach New High Of RM21.7 Bln In 2017

KUALA LUMPUR, March 1 (Bernama) – Malaysia’s exports of rubber products expanded by 19.2 per cent to reach a new high of RM21.7 billion last year from RM18.2 billion in 2016, while supported by strong demand in advanced and developing economies. In a statement Thursday, the Malaysian Rubber Export Promotion Council (MREPC) said the stellar growth was despite the strengthening ringgit against the US dollar, which translated into lower revenue in ringgit terms. Meanwhile, the import of rubber products increased by 15.5 per cent year-on-year (y-o-y) to RM7.6 billion from RM6.6 billion previously, resulting in a trade surplus of RM14 billion for the year under review. “In terms of contribution to overall exports, which totalled RM935.4 billion in 2017, the rubber products industry’s share remained at 2.3 per cent. “Latex products continued to dominate the industry, accounting for 81 per cent of the total exports of rubber products. Exports of latex products surged by 19.2 per cent y-o-y to RM17.5 billion from RM14.6 billion,” it said. The council said rubber gloves remained the largest export revenue generator for the Malaysian rubber products industry, capturing 73 per cent of total exports in 2017, followed by tyres (six per cent), hoses (four per cent), latex threads (three per cent) and condoms (two per cent). The top five export destinations were the United States (29 per cent), European Union 28 (24 per cent), Japan (six per cent), China (five per cent) and Brazil (three per cent). On outlook, MREPC Chief Executive Officer, Low Yoke Kiew said exports of Malaysian rubber products in 2018 remained positive, with growth expected to emanate mainly from the developing economies of Asia, Africa and the Middle East, with the rise in incomes, healthcare and hygiene expenditures. “Export demand from developed markets is expected to grow further in line with the better economic prospects. “Notwithstanding the high-base effect in 2017, export of rubber products is expected to grow by at least five per cent,” she added. -- BERNAMA