31/03/2025

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MONDAY | MAR 31, 2025

Malaysia’s rubber output shrinks amid rising demand

Industry leaders back MDEC’s business digitalisation initiatives for MSMEs KUALA LUMPUR: Industry leaders strongly supported the Business Digitalisation Initiative (BDI), praising it as a leap forward in accelerating the digital adoption of micro, small, and medium enterprises (MSME). They recognise its role in providing businesses with essential tools, funding access, and expert guidance to drive growth and competitiveness in the digital economy. Digital Minister Gobind Singh Deo said: “This BDI initiative is a business-centric and transformative digitalisation initiative by the Madani government to empower MSMEs with innovative technology solutions for their realisation of greater productivity and operational efficiencies.” The BDI is supported by a cumulative funding pool of approximately RM1.5 billion, facilitated through strategic public-private partnerships with financial institutions, digital banks, peer-to-peer (P2P) lending platforms, and local service providers to drive digital transformation for MSMEs across Malaysia. As part of this effort, the Business Digitalisation Initiative also offers affordable freemium e-invoicing tools based on the Peppol framework, supported by 21 service providers accredited by Malaysian Digital Economy Corporation (MDEC). These tools streamline financial processes, improve compliance, and enhance efficiency for MSMEs. MDEC chief executive Anuar Fariz Fadzil said the BDI uplifts MSMEs by building their resilience, enhancing competitiveness, and future-proofing their growth. “We aim to tackle real business ‘pain points’ – whether it’s a lack of skills, tools, funding or even knowing where to begin – and offer targeted, practical and relevant solutions to their business aspirations,“ he said.

Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

o Experts say government intervention needed to rejuvenate industry

Under the MoU, Edotco will provide U Mobile access to its tower infrastructure, resource readiness, and expedited site delivery to support the 5G rollout. Both parties will streamline site selection using artificial intelligence and data-driven analytics, working with state agencies to accelerate approvals. This collaboration aims to speed up new 5G site deployments and expand coverage while exploring commercial arrangements for built-to-suit sites, co-locations, upgrades, and indoor coverage to ensure a cost-efficient and competitive rollout. expected to contribute to market volatility in the coming months,” Margma said. Despite these challenges, Margma remains optimistic about the future demand for rubber gloves, projecting a rebound in global demand and expecting it to reach 450 billion pieces by 2027, up from 307.2 billion pieces in 2023. The key drivers of this growth will be increased glove usage in key markets like the United States, the European Union, and Japan, as well as expanding applications in non-medical sectors post-Covid-19, including hospitality and semiconductor industries, Margma said. To reverse the decline of natural rubber, Afzanizam stressed Malaysia must reinvest in upstream production, not only to ensure a steady supply for its rubber glove industry but also to diversify beyond palm oil in the plantation sector. Afzanizam said: “This could be achieved through greater R&D investment, improved yields, and increased participation from government-linked companies (GLCs).” While Malaysia remains a key player in value-added rubber products, its ability to compete globally in natural rubber supply depends on how it tackles structural inefficiencies, smallholder productivity and supply chain sustainability. Afzanizam stressed that revitalising the upstream sector is critical to ensuring that Malaysia does not fall behind its regional competitors. “Without intervention, Malaysia’s reliance on imported NR will only increase, impacting its long-term competitiveness,” he noted.

PETALING JAYA: As Malaysia struggles with declining natural rubber (NR) output, industry experts argue that the sector must revitalise rubber plantations and strengthen its upstream sector to remain competitive in the global market. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid ( pic ) highlighted that Malaysia’s NR sector is dominated by smallholders, who account for 87% of production, making it difficult to achieve economies of scale. “In contrast, only

intervention to rejuvenate the rubber industry. “Allocating more land for rubber cultivation and providing incentives for smallholders to replant aging trees are crucial steps,” he said. Putra Business School MBA Programme director Prof Dr Ahmed Razman Abdul Latiff highlighted China’s growing need for NR, particularly due to its booming EV industry. “In 2024, China produced 10 million EVs, the highest number recorded, driving up the need for natural rubber. “Although EVs require fewer rubber components than traditional internal combustion engine vehicles, the surge in production means strong demand for tyres, ensuring continued growth in NR consumption,” Ahmed said. In a recent statement, Margma raised concerns over tightening NR supply, citing seasonal factors like wintering and rainy weather, which impact harvesting and supply.

tonnes of NR, but last year, the sector barely managed 386,500 tonnes. “If we do not address this issue, Malaysia will continue losing ground to other major producers like Thailand, Indonesia, and Vietnam,” he said. Malaysian Rubber Glove Manufacturers Association (Margma) former president Denis Low echoed the sentiment, emphasising the need for government

13% of output comes from estates, which typically have better infrastructure and higher efficiency. “This fragmented industry has contributed to declining productivity and increased reliance on imported raw rubber,” he said. Mohd Afzanizam said in 1984, Malaysia produced 1.49 million

“The supply constraints a r e

Govt and MCMC endorse U Mobile’s 5G ambitions KUALA LUMPUR: U Mobile has obtained the official letter of award from the Malaysian Communications and Multimedia Commission (MCMC) for the company’s deployment of Malaysia’s newest 5G network. through U Mobile’s enterprise-grade next-gen 5G network. state-of-the-art, next-generation 5G network for Malaysia. The company’s commitment to excellence and innovation will ensure a superior 5G and 5G-Advanced experience for all Malaysians.

He will also lead strategic stakeholder management to navigate the company’s dynamic business environment while serving as a director on the board of U Mobile, a role he has held since 2006. In July this year, U Mobile and Edotco, a subsidiary of Axiata Group Bhd, formed a strategic partnership to accelerate the rollout of the 5G network under the government’s dual network model. The MoU affirms U Mobile’s commitment to a rapid, effective and cost-efficient deployment of the second 5G network by leveraging Edotco’s extensive tower footprint and expertise.

“We are committed to supporting the nation’s digital transformation by driving 5G adoption, supporting Malaysia’s aim of becoming a high-income digital nation,” he said. U Mobile also applauds the government’s vision of implementing a 5G dual network, which would enhance the industry’s sustainability while promoting competition and innovation, ensuring Malaysia remains at the forefront of technological advancement. With a solid track record spanning more than 17 years, U Mobile is confident in its ability to deliver a

This award comes after U Mobile appointed Kenneth Chang as its deputy CEO, effective March 28, 2025. Chang, 52, is a founding director of U Mobile who has been instrumental in shaping the company’s strategic direction from inception. Chang will oversee regulatory, business strategy, communications and sustainability functions.

In a statement, the company said it is honoured to have the government and MCMC’s mandate and is ready to commence the rollout of its next-gen 5G network. U Mobile CEO Wong Heang Tuck said that with this mandate, U Mobile looks forward to playing a more critical role in realising the government’s ambitions to make Malaysia a regional leader in the digital economy by delivering a superior experience