LACK IN SUSTAINABILITY FOR RUBBER INDUSTRY IN MALAYSIA

THERE ARE REPORT that the sustainability of rubber industry in Malaysia discussed. One of the are two WWF reports released yesterday stated that there's still a lack of sustainability and traceability in the natural rubber industry in Malaysia. The reports, entitled "Mapping the Natural Rubber Value Chain in Malaysia" and "Addendum Report on Rubberwood", found that the problem pertaining to the supply chain of natural rubber lies in the systemic structures of the production system. Malaysia is the world's seventh largest producer and eighth largest consumer of natural rubber in the world. Rubber products in Malaysia are broadly used for three sectors, namely tyres, industrial custom rubber products, and consumables such as gloves and shoes. Malaysia is a major importer of natural rubber from Thailand, as most Malaysian-grown natural rubber goes to tyre applications. The rubber sector is the second largest agricultural sector in Malaysia behind the oil palm sector, and has a significant impact on the environment. For the rubberwood sector, around 90 to 95 per cent of rubberwood goes towards the furniture segment in Malaysia. This segment accounts for 70 to 75 per cent of the rubberwood sector's RM8 to RM9 billion per year of export value in recent years. Rubber production is dominated by smallholders, at 96 per cent, and is a crucial sector in providing job security. As an important commodity to the nation and the rural population, WWF conducted a study to understand the natural rubber value chain in the country. The study found two key issues pertaining to the natural rubber industry, being the lack of sustainability and lack of traceability. The sustainability challenges stem from the fact that the industry is dominated by smallholders. According to Dr Adrian Choo, lead for WWF-Malaysia's Sustainable Markets Programme: "The lack of proper transparency and traceability in the natural rubber industry is rooted in the production system, as it is dominated by smallholders. "The incentives, or lack thereof, is a major influence on their attitudes towards the environment. This challenge is not unique to rubber, but to many other commodities in general. There is also minimal disclosure in public corporate and sustainability reports for natural rubber. While the processing stages are relatively straightforward, there are complex sustainability challenges at the subsequent value chain stages.

The reports found that market instruments, such as certification and premium, are important in mainstreaming sustainability in the natural rubber landscapes. However, key factors such as the synergy between sustainability platforms, smallholder equity, commitment and corresponding practices by major natural rubber buyers, and sustainable financing need to be present. In terms of sustainability, some major Malaysian furniture companies indicate the usage of Forest Stewardship Council (FSC) Controlled Wood and Programme for the Endorsement of Forest Certification (PEFC) certified wood, although the volumes used are not publicly disclosed.  Currently, there is an increase of sustainability mechanisms for natural rubber sourcing, which include certification schemes, roundtables and supplier rating systems. The challenge is to create synergy between the various sustainability schemes to mainstream sustainable natural rubber. For the rubberwood sector, the prospects for sustainable rubberwood appear promising, as concerns on climate change point to an increased interest in wood, to reduce the usage of carbon-intensive steel and cement in the built environment. For instance, cemboards, or cement boards (particleboards made from the combination of cement and wood fibres) are one of the primary products from processing rubberwood.  Nonetheless, interest in FSC and PEFC certifications are challenged by the smallholder-dominated rubberwood landscape, and the lack of interest from seasoned stakeholders. Financial support, incentives and group organisation are required to encourage the certification of rubber plantations, particularly by the younger generation of smallholders. The lack of transparency and traceability impedes the sustainability of the natural rubber sector in Malaysia, and they must be addressed. Fundamental restructuring of the marketing system that will enhance greater financial returns to smallholders is also badly needed. Unless smallholders are incentivised to produce rubber sustainably, it remains challenging to convince them to shift from their embracement of current revenue generation models. Financial incentive is the key. Original article from WWF Malaysia. Thanks.

By,

M Anem,

Putrajaya,

Ma;aysia.

(January 2022).