MALAYSIA, THAILAND, INDONESIA TO CUT DOWN RUBBER EXPORTS NEXT YEAR

KUALA LUMPUR, Dec 17 (Bernama) -- Malaysia, Thailand and Indonesia, the world's
biggest natural rubber exporters, are to cut down on rubber exports from early
next year to address dwindling prices of the commodity.

Deputy Minister of Plantation Industries and Commodities A. Kohilan Pillay
said the three countries would reduce natural rubber exports by 270,000 tonnes
under a scheme to reduce rubber exports.

"The fall in rubber prices is influenced by the drop in demand from
countries that imported Malaysian rubber such as China, the United States and
the European Union member states due to the economic slowdown.

"Hence, immediate remedial measures have to be taken to mitigate the
problem," he said when winding up the debate on the 2009 Budget at policy stage
for his ministry at the Dewan Negara (Senate) Tuesday.

Owing to reduced imports, crude oil prices in the world market had also
fell
sharply which had caused synthetic rubber to be more competitive than natural
rubber.

The price of Standard Malaysian Rubber (SMR) 20 had dropped by 62 per cent
from RM10.51 a kilo on July 3 to RM3.98 a kilo Monday.

This month, the lowest scrap rubber price is RM1.39 a kilo. (US$1=RM3.45)

To reduce the pressure on the supply of natural rubber in the world rubber
market, Kohilan said natural rubber production would be further reduced to
430,000 tonnes.

Other measures to be taken next year is to expedite replanting of old and
unproductive rubber trees to cut down natural rubber production by 60,000 tonnes
in Malaysia, he said.

Thailand and Indonesia would also do likewise to reduce production by
155,000 tonnes, he added.

The House will sit again tomorrow.
-- BERNAMA