Yang Berusaha Pengerusi
Majlis Y Bhg Datuk Dr Michael Dosim Lunjew
Ketua Setiausaha
Kementerian Perusahaan Perladangan dan Komoditi
Y Bhg Tan Sri Dato' Dr Abdullah Mohd Tahir
Pengerusi
Lembaga Getah Malaysia
Y Bhg Datuk Abdul Hamid bin Sawal
Ketua Pengarah
Lembaga Getah Malaysia merangkap Pengerusi Pasaran Getah Malaysia
Y Bhg Tan Sri-Tan Sri, Puan Sri-Puan Sri, Datuk-datuk dan Datin-datin
Wakil-wakil industri getah, dalam dan luar negara
Dif-dif Kehormat
Tuan-tuan dan puan-puan yang dihormati sekalian
Salam sejahtera
Terlebih dahulu, saya ingin mengucapkan ribuan
terima kasih kepada Lembaga Getah Malaysia kerana telah sudi menjemput
saya ke Majlis Makan Malam Pasaran Getah Malaysia 2005.
Saya berasa amat berbesar hati dengan sambutan
dan sokongan yang amat baik terhadap Majlis ini. Sambutan seperti
ini adalah penting kerana ia dapat mewujudkan hubungan yang lebih
bermakna di antara satu sama lain, khususnya di kalangan pengeluar
dan pengguna getah. Semoga semangat sebegini akan terus dikekalkan
bagi mengukuhkan lagi martabat industri getah negara.
Tuan-tuan dan puan-puan,
Izinkan saya meneruskan ucapan saya dalam Bahasa
Inggeris. Distinguished guests, ladies and gentlemen,
It is indeed my pleasure to be able to join
you all tonight to celebrate the 43rd anniversary of the Malaysian
Rubber Exchange (MRE).
I have been informed that the rubber community
has over the years celebrated the MRE annual dinner with great fanfare
and spirit. The overwhelming response to tonight's dinner not only
reflects the healthy state of affair of the rubber trade and the good
rapport between the producers and consumers but also the state of
affair of your bank balance. It is my pleasure and privilege to welcome
both the local guests and foreign visitors, who are present here tonight.
On a more serious note, I am proud to share
with you on the performance of the Malaysian economy which has expanded
by 7.1% in 2004 a result of robust growth in the global trade as well
as domestic demand. Apart from rapid development in the manufacturing
sector, our economy also benefited from the higher commodities prices,
especially that of natural rubber. Natural rubber output increased
by 18.6% from 985,647 tonnes in 2003 to 1.168 million tonnes in 2004,
and the trend continued to remain optimistic for this year. As for
rubber products, it remained strong and the export value for 2004
has expanded by 30% to RM7.88 billion. However, for 2005, the high
oil prices and the general rise in inflation and interest rates are
dampening the world economic growth, hence the rubber industry.
The natural rubber industry has time and again
witnessed the boom and bust cycles in rubber prices. As a major producer,
we are wary of the prolonged periods of very low prices adversely
affecting the livelihood of producers, who are mainly smallholders.
Through the joint efforts of the tripartite cooperation among the
three major rubber producing countries, namely Thailand, Indonesia
and Malaysia, we have successfully put into place measures like the
Supply Management Scheme (SMS) and the Agreed Export Tonnage Scheme
(AETS) with the objective of maintaining equilibrium in the supply-demand
and ensure that prices are sustained at a level remunerative to the
producers and at the same time providing an adequate supply of NR
at a fair price to the consumers.
We have in recent years seen the upward movement
of prices, from a low of 183.50 sen/kg for SMR 20 the day before the
signing of the Bali Declaration in 2001, to the present more remunerative
levels. The average price of SMR 20 in 2004 was 461.90 sen/kg, compared
to only 205.80 sen/kg in 2001, registering a staggering increase of
124.5%.
I am delighted to know that the prevailing
remunerative rubber prices have rekindled interest in the rubber industry,
and that more smallholders have returned to work on their holdings.
However, it has come to my attention that some of those in the industry
have taken advantage of this situation by imposing higher deductions
from the rubber sold by the smallholders. I hope this is an isolated
case and urge that those responsible should stop this practice at
once. They should not think of short term gain and by doing so, killing
the industry and themselves in the long run.
The performance of the rubber market for the
period of January-August 2005 had been impressive. The average price
of SMR 20 and Bulk Latex was at 483.25 sen/kg and 360.62 sen/kg respectively.
This is largely attributed to tight physical supply in Thailand and
other producing countries, coupled with record low stocks at private
warehouses. The strong demand by China, in particular its automotive
industry, coupled with surging crude oil prices, also helped lend
a boost to the NR prices.
Last year, the performance of the NR industry
towards the nation's overall development and growth was encouraging.
In terms of export earnings, raw rubber brought in RM5.21 billion
to the country's revenue while rubber products contributed RM7.88
billion. As for rubber wood and its related products, the sector contributed
RM6.47 billion. Altogether these products accounted for RM19.56 billion
or 4.1% of Malaysia's total export earnings. Compared to the export
value for 2003, the export value had increased by 30.3%. We believe
that for 2005, export earnings from the rubber sector would continue
to play an important role, and that its contribution would be comparable
to, if not more than, 2004.
While the future prospects of the NR industry
is promising, one should not stay complacent but should instead innovate
and be creative to face the challenges ahead. In order to ensure that
NR retains its competitive edge, Malaysia must also increase its efforts
on marketing its rubber technology and value-added rubber products
in niche markets. Besides strengthening and maintaining existing markets,
we also need to venture and penetrate into the non-traditional markets,
both local and abroad, not only for our semi-processed rubber but
also our rubber products.
With regard to penetrating the non-traditional
market, I am aware that it is always easier said than done. Nevertheless,
we have no choice, but to face the challenges head on. In addition,
we must always be ready for globalisation, that is what is in store
now and in the future. We must look at globalisation as an opportunity,
not a threat. We must continuously find ways to improve ourselves
to be able to compete.
I am glad to note that MRE is in the midst
of being restructured to keep abreast with the changes and current
needs of the members. This is the most effective way of keeping an
organisation relevant. However, members must not leave the restructuring
effort solely to the Secretariat. They too, must cooperate in all
the processes. This will not only make the restructuring successful
but, more importantly, the organisation should meet the needs of the
members.
I am also proud to note that the MRE is an
active participant in a number of regional meetings like the ASEAN
Rubber Business Council (ARBC), an organisation comprising producers'
associations, as well as in liaison talks with rubber trade associations
of major producing countries. Such contributions are in addition to
the myriad services they offer to the rubber industry.
Finally, let me once again congratulate the
Organising Committee for having arranged a very successful dinner
for us. My best wishes to all of you. May success and good fortune
be with you in all your future undertakings.
Thank you.
Ministry of Plantation Industries and Commodities Malaysia
18 November 2005
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Speech by the Minister of Plantation Industries and Commodities at the MRE Annual Dinner 2005