@AGROBiz November/December 2025 | Page 13

FEATURE
November-December. 2025 | @ AGROBiz

FEATURE

13

WHERE MALAYSIA GOES FROM HERE

Key focus areas that could shape the future of Malaysia ' s rubber industry.
1. Replanting & Rejuvenation
Younger, high-yield trees are needed to revive longterm production.
2. Smallholder Modernisation
New technologies like CMA can reduce labour needs and make tapping more attractive.
3. Better Price Stability
Consistent income support can help draw younger workers into the sector.
4. Upstream – Downstream Alignment
Synchronising raw material supply with manufacturers boosts national value.
5. Rural Empowerment
Supporting over 450,000 smallholders is crucial to the livelihoods of numerous rural families who rely on the rubber industry.
production is still less than what we consume domestically," Johari said.
Malaysia exported RM33 billion worth of rubber-based products in 2023. To meet industrial demand, the country imported an average of RM7.5 billion in natural rubber as a raw material.
For many, this underscored lost potential- especially for rural communities who could gain more from a resilient, strategic rubber industry.
INNOVATION MEETS AN OLD INDUSTRY
Amid these challenges, 2024 and 2025 have also seen significant technological developments aimed at easing the burdens on smallholders. One example surfaced through the introduction of Cup Lump Modified Asphalt( CMA) technology.
The method, developed by MRB and evaluated by the Public Works Department( JKR), mixes frozen rubber cup lump into asphalt- a system designed to
improve rubber output while reducing the physical toll on tappers.
The technology had shown potential, especially for small farmers. Bernama reported that it could help increase latex yield without requiring additional labour, a crucial advantage for rural communities grappling with workforce shortages.
By the end of 2025, a total of 216.8 kilometres of CMA pavement had been implemented across federal roads, supported by 142 work orders in Peninsular Malaysia. Ongoing evaluation over 38 months in test locations such as Tampin, Baling, Temerloh, and Kota Bharu showed positive results: pavements performed well against rutting and cracking.
" This result proves that this material has great potential for use in road construction," Deputy Minister of Works Datuk Seri Ahmad Maslan said, adding that CMA pavements lasted up to five years, roughly twice the lifespan of regular bitumen pavements.
Smallholders in Perak and Johor also tried the system, noting that it helped stabilise income when traditional tapping became untenable. Though not a cure-all, CMA technology marked progress— demonstrating that innovation could invigorate the sector.
A SYSTEM UNDER PRESSURE
Still, technology alone could not resolve Malaysia ' s structural challenges in the rubber industry, as a disconnect between upstream and downstream segments lay at the core of the issue.
Johari had laid out the numbers clearly when he explained that despite being home to world-class rubber manufacturers, Malaysia ' s domestic rubber supply remained insufficient. The country imported large volumes of raw rubber to keep its factories running smoothly, especially in the glove, automotive and engineering sectors.
The labour shortage compounds the challenge. DOSM noted that the number of rubber tappers continued to decline, reflecting an ageing and dwindling workforce. Without new recruits, productivity continued to slip.
This was not just a Malaysian phenomenon— rubber-producing nations across Southeast Asia had been reporting lower output. However, Malaysia ' s downstream ecosystem makes the issue more urgent: a shortage of raw materials has left industries vulnerable, especially those in which Malaysia has built global competitiveness.
Many have stayed loyal to rubber through price swings, floods and changing markets. But even loyalty has its
limits.
Some argue that tapping is unsustainable due to volatile earnings. Others observe the younger generation favours faster-yielding crops or jobs outside agriculture. With land left untapped, the industry feels the strain.
Even government leaders recognise the emotional weight of the issue. Johari stressed the importance of supporting smallholders through modernisation and better incentives.
Policymakers had been discussing replanting schemes, support packages and new income strategies, but implementation remains the defining challenge.
Malaysia ' s rubber sector may have slipped from the spotlight in recent years, overshadowed by the rise of palm oil, durian exports and newer agricultural conversations. But the significance of rubber never disappeared— it simply grew quieter. Today, that silence is becoming louder. As Malaysia steps into a new economic cycle, the question lingers: will the country rebuild the foundation of its rubber legacy, or continue importing what it once produced in abundance?
For the communities that rely on the industry, the answer matters more than ever.- @ AGROBiz