The Plantation and Commodities Ministry is stepping up engagement with industry players to explore alternative markets following the United States' imposition of tariffs on selected Malaysian rubber products.
Minister Datuk Seri Johari Abdul Ghani said the move was crucial to safeguard the competitiveness of Malaysia's rubber sector, which remains a key contributor to export earnings.
"In 2024, the US accounted for about RM8.3 billion, or 24.6 per cent, of Malaysia's total rubber and rubber product exports," he said at the International Rubber Industry Convention & Expo 2025 (IRICE 2025) here today.
"These tariffs, while politically and economically motivated, have introduced cost pressures, market unpredictability and the need for our exporters to reassess supply chain strategies."
Johari noted that small and medium enterprises were among the most affected, given their limited resources to withstand sudden disruptions.
To address these challenges, he said the ministry is working with stakeholders to identify alternative markets, enhance product value and strengthen compliance with international labour and sustainability standards.
Engagement is being carried out through agencies such as the Malaysian Rubber Council (MRC) and the Malaysian Rubber Board.
He added that Malaysia is also pursuing diplomatic efforts, including through Asean platforms and bilateral channels, to secure fairer treatment for its exports.
Meanwhile, MRC chief executive officer Muhammad Eizaaz Muhammad Redzuan said the US remains Malaysia's largest export destination for dry rubber products, with exports valued at RM759.7 million in 2024.
This was followed by Singapore (RM442.1 million), Australia (RM173.5 million), China (RM154.7 million) and Thailand (RM131.8 million).
"Encouragingly, shipments to Singapore, China and Thailand recorded growth of 17.3 per cent, 4.3 per cent and 2.7 per cent respectively, reflecting Malaysia's ability to diversify and secure gains in non-US markets," he said.
Moving forward, Muhammad Eizaaz said the MRC plans to expand exports into Eastern Europe, the Middle East and Asean.
"Those are the big growing markets that we are targeting for next year. We will provide special incentives for industry members. We will also intensify our trade missions and market visits to all these regions," he added.
Organised by the Malaysian Rubber Products Manufacturers Association and co-hosted with the MRC, IRICE 2025 features 111 booths and 86 exhibitors from six countries, including China, Germany, Taiwan, Japan and Thailand.
The three-day convention, running from Aug 26 to Aug 28, is expected to attract more than 3,000 trade buyers and 200 delegates.
Source: NST