Malaysia Conditions of Natural Rubber in Exporting Countries .1 Thailand

31 Table 7 Area Harvested, Production and Productivity of Natural Rubber in Malaysia, 2003 -2012 Year Area Harvested Hectare Production Quantity Tonnes Productivity TonnesHectare 2003 1315000 985600 0.750 2004 1275000 1168700 0.917 2005 1237000 1126000 0.910 2006 1251000 1283600 1.026 2007 1248000 1199600 0.961 2008 1247000 1072400 0.860 2009 1058000 857019 0.810 2010 1112000 900000 0.809 2011 1136000 926000 0.815 2012 1200000 970000 0.808 Source: Author’s elaboration with data from FAO, 2013

5.3 The Balance of Natural Rubber Production and Consumption

Total production of natural rubber in the three major exporting countries Thailand, Indonesia and Malaysia is much greater than their domestic consumption. The production of natural rubber from these three countries that is exported is more than that which is absorbed by their domestic market. In 2012, the total consumption of Thailand natural rubber accounted for only 14 percent of the total production and Indonesia with only 15 percent, while Malaysia was slightly higher at 46 percent Figures 11, 12, 13. The low domestic consumption in Indonesia and Thailand was primarily due to underdeveloped downstream industries such as the natural rubber-based tire industry, automotive, gloves and other industries that require raw materials of natural rubber. On the contrary, Malaysian natural rubber production in 2011 amounted to 926,000 tons compared with 900,000 tons in 2010. The domestic consumption of natural rubber for 2011 was 401,923 tons. The natural rubber consuming industries of importance in 2011 were latex products 80.3, tires 9.2, general rubber products 7.2, industrial rubber products 3.2 and others 0.2. The rapid growth of these industries has enabled Malaysia to become the worlds largest consumer of natural rubber latex. This sub-sector accounted for 81 percent of the total value of rubber exports, which was largely contributed to by gloves, catheters and latex threads. At the same time, Malaysia continued to maintain its position as the worlds leading producer and exporter of catheters, latex threads and natural rubber medical gloves Malaysian Rubber Board, 2014. 32 Figure 11 Production, Consumption and Export of Natural Rubber in Thailand, 2003 – 2012 Source: Author’s elaboration with data from FAO, 2013; UNCOMTRADE, 2014; IRSG 2014 The production surplus of natural rubber produced in Thailand, Indonesia and Malaysia are exported to other countries. As these three countries have an extensive production surplus, they have become the largest natural rubber exporting countries in the world. Thailand’s greatest total exports occurred in 2003, with numbers that were much higher than exports in the years thereafter. The falling trend in Thailand’s exports since 2003 is due to the intense competition with the supply of natural rubber from Indonesia Figure 11 Figure 12 Production, Consumption and Export of Natural Rubber in Indonesia, 2003 – 2012 Source: Author’s elaboration with data from FAO, 2013; UNCOMTRADE, 2014; IRSG 2014 1000000 2000000 3000000 4000000 Ton n es Year Production Quantity Tonnes Consumption Tonnes Export Tonnes 500000 1000000 1500000 2000000 2500000 3000000 3500000 Ton n es Year Production Quantity Tonnes Consumption Tonnes