KUALA LUMPUR: The government is conducting a study to strengthen cooperation with Indonesia and Thailand in developing Kedah Rubber City (KRC).
Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah said the study would examine challenges faced by the three countries, including declining youth involvement, fluctuating rubber prices, technological gaps and differences in product quality standards.
"We want to examine fluctuations in rubber prices and the technological gaps among the three countries.
"More importantly, differences in quality standards must be addressed and harmonised to ensure better integration of high-value-added rubber products," he said during the Question and Answer session in the Dewan Rakyat on Monday (Oct 26).
Mohd Shahar said the study, conducted under the Working Group on Trade and Investment Facilitation (WGTI), would also assess opportunities to strengthen rubber production and supply networks while expanding KRC's access to global markets.
He said the six-month study was expected to be completed in the early second quarter of 2027.
"The letter of agreement (LOA) has been signed by the appointed consultant, and the study is expected to take six months to complete.
"We are confident its findings will strengthen KRC's development strategy through cooperation among the three countries and help expand its market reach globally," he said.
He was responding to a supplementary question from Nurul Amin Hamid (PN-Padang Terap) on the long-term development plans for KRC in Padang Terap, particularly supporting industries such as downstream rubber processing and industrial traffic infrastructure.
