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Industries in Malaysia

Rubber-based Industry

The Malaysian rubber products industry is made up of more than 510 manufacturers producing latex products;
tyres and tyre-related products; and industrial and general rubber products. The industry employed more than
68,700 workers and contributed RM10.58 billion to the country's export earnings in 2007. Rubber products
accounted for 1.7 per cent of Malaysia's total exports and 2.3 per cent of Malaysia exports from the
manufacturing sector.

Malaysia's natural rubber production in 2007 amounted to 1.20 million tonnes compared with 1.28 million
tonnes in 2006. The major natural rubber consuming industries for 2007 were rubber gloves 63.8%, rubber
thread 13.0% and tyres and tubes 11.8%. The total consumption of the three industries constitutes 88.6% of
the overall domestic consumption of natural rubber. 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 163
manufacturers producing medical, household and industrial gloves, catheters, latex threads, balloons, finger
stalls and foam products. This sub-sector accounted for 72 per cent of the 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, supplying more
than 80 per cent of the world market for catheters, 70 per cent for latex threads and 60 per cent for rubber
gloves.

There are currently 126 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 six manufacturing other types of tyres. Exports value of rubber tyres, flaps and
inner tubes in 2007 amounted to RM891.6 million.

The industrial and general rubber products sub-sector comprises 194 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.As outlined
in the IMP3, more R&D efforts need to be undertaken in product development and downstream activities.New
areas for promotion would include the extraction of biochemical products from latex using biotechnology.These
efforts will ensure the continuous improvement in the products quality to maintain competitiveness in the
export market.

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.

The Rubber Industry in Malaysia
Malaysia is the third biggest producer of natural rubber (NR) in the world, and its well-established and superior quality is widely
used as a benchmark in the international market.

The Malaysian rubber industry produces a broad range of products from natural rubber as well as rubberwood products. Malaysia
remains the world's leading producer and exporter of natural rubber medical gloves, catheters and latex thread.

and 60% for rubber gloves. and tyres and tubes industries. earthmover tyres. and catheters. last year. comprised rubber gloves. balloons. and sheeting for the electrical & electronics. The key natural rubber consuming industries. machinery & equipment and construction industries. The total consumption of these three industries comprises 88. catheters. engineering. and industrial and general rubber products.6 billion to the country's export earnings. This sub-sector contributed 72% to the total value of exports. Apart from fiscal incentives. latex products. comprising RM 5. finger stalls and foam products. regional companies in the rubber industry that reinvest to develop their projects are eligible for Pioneer Status or Investment Tax Allowance. automotive. about 126 companies in the tyres and tyre-related products sub-sector containing nine tyre producers. stressing on high value-added and high technology rubber products. The swift growth of the industry has made Malaysia the largest consumer of natural rubber latex in the world. among which is the rubber products industry. the government has further modified the incentives to promote precise activities. catheters. There are at present. mountings. latex threads. 70% for latex threads. There are three leading tyre producers manufacturing passenger car tyres. RM 7. The government continues to endorse the development of Malaysia's resource-based industries to expand the nation's sources of growth. hoses. tyre treads for retreading. and marine applications. seals. mainly for the domestic market. and natural rubber medical gloves. household and industrial gloves.In 2004. The latex products sub-sector is the largest sub-sector in the rubber products industry and includes more than 160 manufacturers producing medical. The industrial and general rubber products sub-sector includes 194 companies manufacturing an extensive variety of rubber products like beltings. rubber thread. The country continues to uphold its position as the world's leading producer and exporter of latex threads. he Malaysian rubber products industry manufactures tyre and tyre-related products. tubing. while the remaining companies manufacture retreads. To further promote investments in resource-based industries. contribute more than 80% of the world market for catheters.6% of the entire domestic consumption of natural rubber. More R&D work needs to be embarked upon in product development and down-stream activities. like products for construction. and commercial vehicle tyres. There are more than 500 manufacturers in this industry. There is a need for the rubber products industry to expand further.9 billion of manufactured goods and RM 6.2 billion of natural rubber. the rubber products sector contributed RM 19. and valves. latex threads.5 billion of rubberwood products. mainly contributed by gloves. . which are available presently for promoted products and activities.