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BY ADELINE ANTHONY ALPHONSO
MALAYSIA ' S rubber sector has long been woven into the country ' s agricultural identity, a symbol of rural livelihoods and a cornerstone of export earnings. Despite Malaysia ' s legacy in natural rubber, the country produces only half of what it consumes. With declining smallholder output, idle plantations, and shifting global competition, the industry is standing at a critical moment— one that demands fresh attention and long-term solutions.
The signals were subtle at first. Production numbers released by the Department of Statistics Malaysia( DOSM) in November showed production fell 14.8 per cent to 26,647 tonnes in September 2025, down from 31,285 tonnes in August.
The trend was even clearer when viewed year-on-year— a 16.3 per cent drop from
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“ The industry is standing at a critical moment one that demands fresh attention and longterm solutions." |
September 2024.
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin explained that the smallholder sector continues to dominate Malaysia ' s production landscape, contributing 85.2 per cent of total output in September. In contrast, estates— once central to the rubber economy— now make up just 14.8 per cent.
Although the third quarter of 2025 performed better than the previous quarter— with production rising 36.9 per cent to 93,815 tonnes— the improvement did not offset the wider structural decline.
" The annual performance of Malaysia ' s NR production in 3Q 2025 recorded a decrease of 11.3 per cent as compared to 3Q 2024," Uzir said, noting that stockpiles rose marginally to 159,629 tonnes by September.
DOSM ' s monthly data made the situation clear: production lagged, while global demand for medical gloves, automotive components, high-value rubber goods, and green technologies remained strong. The decline was gradual, driven by ageing trees, minimal replanting, low prices, and smallholders leaving tapping.
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BREAKDOWN IN THE FIELD
By late 2025, it was clear that Malaysia ' s rubber struggle stemmed from multiple pressures. Most rubber still came from smallholders, many of whom were contending with unstable prices and labour shortages. Younger workers were leaving, letting farms go dormant.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi had highlighted the concern earlier, noting the number of untapped plantations. His call for revitalisation reflected a broader concern: if trees remained idle, Malaysia would continue to produce less than it consumed.
This concern resurfaced when Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani addressed the long-standing imbalance within the industry. He pointed out that while Malaysia does produce highquality rubber, output levels are nowhere near domestic demand.
" We remain a net importer of rubber, although we are among the biggest global exporters of rubber-based goods. Our rubber
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