Malaysia’s natural rubber (NR) production declined by 12.8% month-on-month to 31,285 tonnes in August 2025, down from 35,884 tonnes in July, according to the Department of Statistics Malaysia (DOSM).
On a year-on-year basis, output also registered a 12.9% drop from 35,908 tonnes recorded in August 2024, reflecting continued moderation in smallholder activity, which remains the main contributor to national supply.
The smallholders’ sector accounted for 86.5% of total NR output, while estates contributed the remaining 13.5%, DOSM said in its latest Monthly Rubber Statistics report.
Total NR stocks in August decreased by 7.3% to 158,591 tonnes compared with 171,153 tonnes in July, indicating tightening domestic supply. Rubber processors’ factories held the largest share of inventories at 82.8%, followed by rubber consumers’ factories (17.0%) and rubber estates (0.2%).
Meanwhile, exports of natural rubber increased by 6.0% month-on-month to 39,419 tonnes in August, up from 37,198 tonnes in July, supported by steady demand from key trading partners.
China remained Malaysia’s largest export destination, accounting for 39.1% of total shipments, followed by Germany (16.1%), the United Arab Emirates (9.2%), the United States (5.7%), and Portugal (3.9%).
The export performance was largely driven by rubber-based products, including gloves, tyres, tubes, and rubber threads. Gloves continued to dominate with an export value of RM1.2 billion in August, though this marked a 7.7% decline compared with RM1.3 billion in July.
Mixed Price Movements
The average monthly price trend for natural rubber products showed a mixed performance in August.
Concentrated Latex slipped 0.3% to 569.48 sen per kg (July: 571.30 sen).
Scrap rubber rose 1.3% to 594.18 sen per kg (July: 586.68 sen).
Prices for Standard Malaysian Rubber (SMR) grades showed varied movement, increasing up to 1.1% for some grades while declining by 0.3% for others.
Analysts note that Malaysia’s natural rubber industry continues to face seasonal and structural challenges, including weather disruptions, fluctuating demand from major importers, and competition from synthetic rubber. However, improved export demand—particularly from China and Europe—may help stabilize prices in the coming months.
Malaysia remains one of the world’s key producers of natural rubber, with the sector playing a vital role in supplying raw materials for the global automotive, healthcare, and manufacturing industries.