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The average price of Malaysian rubber reached **** U.S. dollars per kilogram in 2023, a decrease compared to around **** U.S. dollars per kilogram in 2022. The price of rubber has been declining since it reached its highest value in 2021, at more than two U.S. dollars per kilogram.

Versatile commodity in different industries

Rubber is one of the leading commodities in the Malaysian agricultural industry after palm oil. As a versatile material, it is also widely used in the manufacturing industry in the country. Malaysia produced a wide variety of rubber products, from car tires to latex goods, such as rubber gloves and other medical equipment. The gross added value of rubber product manufacturing in Malaysia more than doubled in the past three years, mainly because of the increased demand for rubber gloves during the COVID-19 pandemic.

A decline in rubber production

Although rubber as a raw material in the manufacturing industry is currently in high demand, rubber production in Malaysia has declined since 2017. Rubber in the country was mainly grown by smallholder farmers instead of large plantation estates. The lack of price incentives for these farmers, coupled with challenges posed by climate change, has caused many smallholder farmers to abandon their rubber farms. However, with the forecast price increase of the commodity, Malaysia might be able to increase its rubber production in the following years.