By Danni Haizal Danial Donald
KUALA LUMPUR, Dec 17 (Bernama) -- Malaysia’s rubber industry recorded a mixed performance this year, with output and exports, including external demand for gloves contracting, while the lesser commodities of cocoa and pepper bucked the trend by showing resilience.
Exports remained robust amid rising global demand, especially for cocoa and pepper, despite ongoing structural constraints and broader market uncertainties.
Overall, the rubber sector was characterised by weaker production despite monthly fluctuations, resilient export activity and uneven price movements.
The Department of Statistics Malaysia (DOSM) said natural rubber (NR) output fell 14.8 per cent to 26,647 tonnes in September 2025 from 31,285 tonnes in August.
Despite the lower output, Malaysia’s NR stocks increased marginally by 0.7 per cent to 159,629 tonnes in September compared with 158,157 tonnes a month earlier.
Rubber processors held the bulk of inventories at 81.9 per cent, followed by rubber consumer factories (18.0 per cent) and estates (0.1 per cent).
Exports of NR stood at 33,548 tonnes in September, a 15.1 per cent decline from 39,517 tonnes in August, while export performance continued to be supported by downstream rubber-based products, including gloves, tyres, tubes and rubber threads.
Gloves remained Malaysia’s leading rubber-based export, valued at RM1.1 billion in September 2025, an 8.2 per cent drop from RM1.2 billion the previous month.
To date, domestic natural rubber production is estimated at around 350,000 tonnes — still considered sustainable — although demand exceeds one million tonnes.
Another Strong year for Cocoa
Malaysia’s cocoa industry recorded another strong year, with export earnings expected to reach RM15 billion by end-2025, supported by robust global demand, solid downstream processing activities and a renewed push to revitalise upstream production.
The Malaysian Cocoa Board (MCB), said the sector recorded RM9.69 billion in export revenue in the first half of 2025 (1H 2025), keeping it on track to match last year’s RM15.06 billion performance, one of the highest in the industry’s history.
Malaysia also retained its position as one of the world’s top five cocoa grinders, with an annual processing capacity of around 368,000 to 370,000 tonnes, reinforcing its status as a major global hub for cocoa-based ingredients and confectionery products.
However, the upstream segment continues to face structural challenges. Domestic cocoa bean production — though improving from 269 tonnes to 445 tonnes — remains far below processing requirements, forcing manufacturers to rely heavily on imports.
Industry players warn that this reliance increases vulnerability to global supply disruptions and volatile world prices.
Pepper Robust in 2025
Malaysia’s pepper industry also delivered a robust performance in 2025, driven by surging prices, stronger exports and growing global demand for high-quality Malaysian pepper, despite structural constraints in production capacity.
The Malaysian Pepper Board (MPB) said black pepper prices jumped 51 per cent this year to RM27,240 per tonne, compared with RM18,066 per tonne in 2024, while white pepper prices recorded a similar trend, rising 43 per cent year-on-year to RM37,407 per tonne — one of the strongest rallies in recent years.
Pepper exports grew in tandem with higher prices, reaching RM186.67 million in 2024, up 24 per cent from 2023 driven by strong demand from Japan, China, South Korea and Europe.
Japan remained the largest single destination, accounting for nearly half of Malaysia’s total pepper shipments due to its preference for high-grade varieties.
Production also registered moderate improvements, with total cultivation area expanding slightly to 8,301 hectares, supported by 39,517 registered smallholders under MPB’s development programmes.
Outlook for 2026
The Malaysian Rubber Board (MRB) will establish a RM600 million Research Centre of Excellence under Budget 2026 to ensure the industry’s long-term sustainability.
The board will also develop the Strategic Plan 2026–2030 to chart a more sustainable path for the country’s rubber industry, boosting productivity, driving innovation through research and development (R&D), empowering support services, and strengthening operational efficiency and governance.
For cocoa, the government — through MCB — has allocated RM19 million from 2024 to 2026 for the Cocoa Farm Rehabilitation Project to enhance cultivation nationwide, as a key source of the country's economy.
It will also implement the Cocoa Yield Production Stimulus Programme to expand planted areas by 550 hectares and to facilitate mini cocoa processing infrastructure.
To keep pace with rising global demand, the government aims to expand cocoa cultivation to 10,000 hectares by 2030 from the current 5,985 hectares, under the Cocoa Cultivation Promotion Programme.
As for pepper, the government and MPB are intensifying efforts to expand cultivation beyond traditional areas, accelerate replanting, and promote downstream ventures, including premium processed pepper, nutraceutical applications and higher-value spice products.
MPB is also advancing industry transformation through modern technologies such as fertigation systems, Internet of Things (IoT), drones and hyperspectral imaging, while digital tools like LadaGo, Dr Lada and NutriLada help farmers manage crops more efficiently.
Together with MyGAP and MyOrganic certifications, these initiatives are opening doors to premium markets, further strengthening Malaysia’s position as a producer of high-quality pepper on the global stage.
-- BERNAMA
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