Production drops sharply in September despite stronger quarterly recovery trends

Malaysia’s natural rubber (NR) sector recorded a significant decline in September 2025, marking a sharper contraction in both monthly and annual output as smallholders and estates face continued production challenges.

Production Drops in September

Malaysia’s NR production fell 14.8% month-on-month to 26,647 tonnes in September 2025, according to the Department of Statistics Malaysia (DOSM). Output was also down 16.3% compared to September 2024, signalling persistent moderation across plantations. Smallholders remained the dominant contributors at 85.2% of total production, while estates accounted for 14.8%.

Quarterly Trends Show Seasonal Recovery

Despite the September dip, natural rubber output surged 36.9% in the third quarter of 2025, rising to 93,815 tonnes from 68,513 tonnes in the second quarter. This rebound reflects seasonal improvements in tapping activities. However, quarter-on-quarter gains were not enough to offset long-term declines, with output still 11.3% lower than the 105,715 tonnes recorded in Q3 2024.

Stocks Inch Up as Exports Decline

Total NR stocks increased slightly by 0.7% to 159,629 tonnes in September. Rubber processors’ factories held the majority share at 81.9%, followed by consumers’ factories at 18% and estates at 0.1%.
At the same time, exports fell 15.1% to 33,548 tonnes as global demand softened. China remained Malaysia’s largest buyer, accounting for 44.2% of shipments, followed by the UAE (13.8%), Germany (12.8%), the United States (5.5%) and Portugal (4.2%).

Gloves Continue to Lead Export Revenue

NR-based products such as gloves, tyres, tubes and rubber threads supported export performance. Gloves remained the top contributor with RM1.1 billion in export value in September — an 8.2% decline from August’s RM1.2 billion but still a key economic driver for the industry.

Prices Trend Higher Despite Lower Output

Average prices for key rubber categories rose in September.

• Concentrated latex increased 1.5% to 577.89 sen per kilogram.
• Scrap rubber rose 1.7% to 604.53 sen per kilogram.
• Standard Malaysian Rubber (SMR) grades recorded price gains between 1.4% and 2.1%.

Global indicators showed mixed trends, with World Bank data noting a 1.7% increase in TSR 20 prices but a 1.9% decline in Singapore/Malaysia (SGP/MYS) benchmarks.

Industry Outlook: Balancing Recovery and Headwinds

While seasonal improvements have lifted quarterly production, the continued year-on-year decline highlights challenges such as labour constraints, volatile global demand and inconsistent weather conditions. Malaysia’s reliance on smallholders also exposes the sector to structural vulnerabilities that may limit short-term growth potential.

Malaysia’s rubber sector is navigating a complex landscape of shifting demand, fluctuating prices and subdued production. As one of the region’s key commodity exporters, these trends carry implications not only for Malaysia’s rural economy but also for trade flows with major markets such as China, Singapore and Indonesia — where rubber-based manufacturing remains closely linked to supply stability and pricing trends.

Sources: BusinessToday Malaysia (2025) , Bernama (2025)

Keywords: Natural Rubber Production, Malaysia Output, Rubber Exports, DOSM Statistics, Commodity Prices