Find solutions to reduce excess rubber supply
At the end of 01/2019, the meeting between the three major producers in the rubber market, including Malaysia, Thailand and Indonesia, will take place in order to find solutions to reduce excess rubber supply in the market.
According to Teresa Kok, Malaysia's Minister of Industry, three major producers in the current rubber market, including Malaysia, Thailand and Indonesia, will meet in Bangkok at the end of 01/2019 to find solutions to help small-scale businesses to increase income and reduces excess rubber supply in the market. Speaking at the press conference, she said: "Malaysia will meet other rubber producing countries in Bangkok on 19 and 20 January 2019 to find ways to boost demand for rubber."
The three-party International Rubber Council is planning to use more rubber in making roads in these countries in order to reduce excess supply. “In 2019, the Malaysian government will spend 100 million Ringgit to the Ministry of Construction to build 100 km of rubber roads across the country”, said Teresa Kok.
At this meeting, the Malaysian government also wants to agree with Thailand and Indonesia on resolving the global rubber price problem. "Low rubber prices are a major concern for our 450.000 small-scale rubber producing households," Teresa Kok added.
Malaysia with a total output of 670.000 tons is currently the 5th largest natural rubber producer in the world, after Thailand, Indonesia, Vietnam and China.
Lim Guan Eng, Malaysia's Minister of Finance, announced it agreed to spend nearly 164.8 million Ringgit in the form of aid to 274.639 rubber household owners. The first amount of 300 Ringgit will be paid at the end of 2018 and the rest will be paid at the beginning of 2019. Mr. Lim also said that from 01/2019, the government will raise the floor price for scrap rubber from 2.2 Ringgit to 2.5 Ringgit.
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Source: vietnambiz.vn
