KUALA LUMPUR: Green and clean industries would be the next frontier that the Malaysian rubber industry can capitalise on moving forward.
Malaysian Rubber Council deputy director for marketing and development Angela Chan said, “This is in line with consumer demand since we see an increasing demand for electric vehicles which is projected to grow at a compounded annual growth rate (CAGR) of 27% from 2021 to 2030.”
Speaking at the Indonesia-Malaysia Thailand (IMT) Growth Triangle Rubber Cities and Rubber Industry Cooperation forum, she noted that the opportunity lies in rubber products that cater to new technologies such as green building, modular, pre-fabrication, construction, smart cities and other green driven industries.
“For future development of industrial and general rubber goods (IGRG) in the IMT region, we could perhaps cater to more environmentally friendly recyclable and lighter materials, ” Chan added.
She also highlighted that the construction industry’s usage of IGRG is expected to grow at a CAGR of 4% from 2021-2023.
However, the potential growth in this segment of the rubber industry is being held back now by the continued Covid-19 pandemic outbreak.
“The pandemic has greatly affected demand for industrial rubber products due to the various lockdowns and restrictions being put in place by many countries worldwide, ” Chan said.
“This has affected industrial products demand greatly.
“But it is a temporary situation as we are hoping with the ongoing vaccination drives, this will lead to an eventual economic recovery, ” she added.
Post-recovery, demand for certain rubber products from the IGRG segment such as hoses and auto parts would also rise.
“They would resume at a high demand for the next few years due mainly to the spending by local governments to spur their local economies which would lead to the growth in the construction industry, ” she said.
There are over 100 types of rubber products within the IGRG segment of the rubber industry and these in turn supplies and supports various other industries such as automotive, transportation, construction, marine, mining and household.