Highlights

• Year-on-year increase of 11.06% in NR production in 2024

• Ivory Coast once again upstages Thailand in imports

• Seed collection and sales to nurseries turn revenue spinner for smallholders

Malaysia’s consistent efforts in boosting rubber production all through the past year yielded significant results with the NR output in 2024 registering an impressive 11.06% growth compared to 2023. The Malaysian natural rubber production in 2024 has gone up to 386,400 tons compared to 347,900 tons in 2023.

Malaysian rubber exports in 2024 totaled 577,214 tons, while imports in the year totaled 1.03 million tons. In 2023, exports in total were 578,691 tons whereas imports stood at over 1 million tons. The difference in imports aggregated to 2.5% year on year in 2024 whereas exports declined by .25% in 2024 from the previous year.

The fourth quarter 2024 performance of Malaysia's natural rubber production recorded an even more impressive increase of 24.6% to 117,040 tons compared to the fourth quarter 2023 (93,956 tons). The fourth quarter registered an increase of 10.7% compared to 105,715 tons in the third quarter of 2024.

However, NR production decreased by 5.1% in December 2024 (38,299 tons)  compared to November 2024 (40,341 tons). Year-on-year comparison showed that the production of NR increased by 26.2% (December 2023: 30,342 tons). Production of NR in December 2024 for Malaysia was mainly contributed by the smallholders sector (89.4%) as compared to the estates sector (10.6%).

Source: Dept of Statistics Malaysia and Helixtap

Rubber imports in significant quantities continue

Ivory Coast came back from behind to upend Thailand in imports in December 2024, reversing the trend from July 2024 when Thailand regained its lead position after a prior nine-month dominance by Ivory Coast. Malaysian total rubber imports in December were 100,349 tons, down 3.2% month-on-month, with Ivory Coast cornering 32.5%, followed by Thailand (30.4%) and the Philippines (9.1%).

Exports of Malaysia's NR amounted to 44,338 tons in December 2024, up 1.8% against November 2024 (43,562 tons). China remained the main destination for NR exports, accounting for 49% of total exports, followed by Germany (12.9%), the United Arab Emirates (7.3%), the USA (3.7%), and Portugal (3.3%). 

The export performance was contributed by NR-based products such as gloves, tires, tubes, and rubber threads. Gloves were the main exports at a value of RM1.5 billion in December 2024, up 6.2% compared to November 2024 (RM1.4 billion).

The domestic rubber consumption witnessed a .5% decline month-on-month to 22,192 tons in December 2024 with rubber gloves having a share of 13,309 tons, followed by rubber threads (3315 tons), tires and tubes (1463 tons) and others (4104 tons).

Total stocks of NR in December 2024 increased by 1.4% to 167,745 tons compared to 165,384 tons in November 2024. Rubber processors factories contributed 88.7% of the stocks, followed by rubber consumers factories (11.2%) and rubber estates (0.1%).

Analysis of the average monthly price showed that Concentrated Latex recorded an increase of 2.3% (December 2024: 699.35 sen per kg; November 2024: 683.48 sen per kg), while Scrap increased by 3.9% (December 2024: 757.28 sen per kg; November 2024: 728.68 sen per kg). The prices for all Standard Malaysian Rubber (S.M.R) increased between 2.3% and 3.5%.

Source: Dept of Statistics Malaysia and Helixtap

According to the Malaysia Rubber Board Digest, in December 2024, the Kuala Lumpur rubber market witnessed an increase in the price of SMR 20. Market sentiment was supported by prolonged concerns about supply disruption due to heavy rains and flooding in major NR-producing countries. Market sentiment was also boosted by the rally in the regional rubber futures markets due to improved Chinese economic performance from additional stimulus to support economic growth.

RISDA widens smallholder income streams

Meanwhile, the Rubber Industry Smallholders Development Authority (RISDA) is calling on rubber smallholders to supplement their income by collecting and selling rubber seeds to its nurseries. This initiative aims to meet the rising demand for seedlings while providing an additional revenue stream for smallholders. Rubber seeds are hard to come by after the introduction of the pandemic-related movement restrictions in the country.

According to RISDA, over one million rubber seedlings will be required in 2025 and RISDA requires 10 tons of rubber seeds as of now. To fulfill this demand, the agency is sourcing rubber seeds from smallholders and private plantations across Kelantan and other rubber-producing regions. To expedite collection efforts, RISDA is actively engaging with smallholders through social media campaigns and direct outreach programs.

Currently, RISDA has set a purchasing rate of RM3.50 per kilogram for fresh rubber seeds. With each collector gathering between 20 to 50 kilograms daily, smallholders have the potential to earn between RM70 and RM170 per batch. However, the best collection period is during the dry months between July and August. The monsoon season, which brings excessive rainfall, reduces both the quantity and quality of rubber seeds, making collection less viable.

To ensure optimal germination, RISDA has outlined strict quality standards for seed collection. Seeds must be fresh, glossy, and dense, with storage limited to under a week to maintain viability. The screening process involves submerging seeds in water; viable seeds sink, while dry or damaged seeds float and are discarded. After collection, the germination process takes approximately ten months before the seedlings are ready for plantation. RISDA has a high opinion of local seeds that offer better germination rates.

This program has gained traction among smallholders in several districts, including Machang, Tanah Merah, Pasir Puteh, and Kuala Krai. With the ongoing support of RISDA, smallholders are expected to benefit financially while contributing to sustainable rubber cultivation in Malaysia.