Rubber exports amounted to RM19.1 billion in the first seven months of this year, surpassing 2016's total of RM18.12 billion, said Minister of Plantation Industries and Commodities Datuk Seri Mah Siew Keong.
"We're experiencing good rubber exports this year and this is due to higher global demand," he told reporters after presenting scholarship awards from Malaysian Rubber Export Promotion Council (MREPC) to 29 deserving students pursuing their tertiary education at local universities.
"It's not because of the weakening of the ringgit against the US dollar. As you can see, the ringgit has been strengthening and it is trading at around RM4.20 to US$1.00," the minister explained.
Earlier in the year, Mah had forecast Malaysia's rubber exports to grow 10 per cent from last year's RM18.12 billion to hit RM20 billion.
When asked if he would double this year's growth forecast to double to 20 per cent to RM21.7 billion now that exports in the first seven months has already surpassed last year's value, Mah just smiled and replied, "Our rubber exporters should do well. We are working hard to add value to our exports."
Also present at the media conference is Supermax Corp Bhd group managing director Datuk Seri Stanley Thai.
Representing medical glove exporters, Thai said there had been increased exports as big buyers in the US are buying more natural rubber and nitrile variants from Malaysia, instead of vinyl gloves from China.
Earlier this morning, here, Mah had launched the MREPC Industry Linkage Fund (ILF), themed ‘Enhancing Competitiveness Through Research Collaboration’.
The minister said the ILF supports the development of the high value rubber products by nurturing talents in market promotion and product development. The ILF award funds either a full research or in the form of a matching grant.
The full research grant would be awarded to projects which offer industry-wide solutions, while the matching grant would cater to specific projects that would benefit individual companies, especially small and medium enterprises.
Meanwhile, Mah said, for upcoming Budget 2018 to be tabled in Parliament on 27th October 2017, he said his ministry had written to Finance Ministry to extend the reinvestment allowance for manufacturers beyond 2018.
“We hope it will be extended beyond 2018 as the manufacturers have long-term plans for their businesses, and they need some time to implement them,” he said.
Under the 2016 Budget, the government has accorded reinvestment allowance to manufacturers, with up to 60 per cent of the allowed capital expenditure for the years 2016, 2017 and 2018.
Medical gloves, catheters and condom manufacturers have and will continue to pump in a lot of money to automate many processes along its production lines.
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