KUALA LUMPUR, April 22 — The Ministry of Plantation Industries and Commodities is committed to encouraging participation from companies, as well as investors from Egypt and Qatar to take advantage of the Kedah Rubber City facilities and tap the potential markets in Asean.
The Malaysian Rubber Council (MRC), in a statement, said this is following a recent ministerial mission to Egypt and Qatar led by Minister Datuk Zuraida Kamaruddin to identify potential markets and partnership opportunities for the rubber sector in the Middle East and Asean.
“Companies and investors from these two regions could explore the possibility of forming a partnership with Malaysian companies in the rubber sector, such as in rubber products manufacturing.
“For example, Qatar could explore the possibility of forming a partnership, particularly in tyre manufacturing as Malaysia is currently importing tyres worth more than RM2 billion (US$830 million), hence, the government is very much supporting tyre manufacturing,” Zuraida was quoted as saying today.
The government has gazetted a 600-hectare dedicated rubber eco-industrial park park known as the Kedah Rubber City to cater for rubber production, research and development (R&D) and manufacturing.
The MRC said investors could leverage Malaysia’s position as one of the world’s main exporters of rubber products and the free-trade agreement between Malaysia and other Asean countries (AFTA) where most rubber products have zero import tariff.
Specific incentives would also be provided to investors who are based in the Rubber City such as pioneer status and R&D grants.
In 2021, Malaysia exported rubber products worth US$15.9 million (RM68 million) to Qatar, reflecting a compounded annual growth rate (CAGR) of 110 per cent from 2019 to 2021.
Rubber gloves were the main products exported to Qatar from Malaysia with 70 per cent market share and export value of US$14.4 million, while other rubber products exported included hoses, seals, dock fenders, and footwear. — Bernama