Goodyear plant closure: Reliance on imported latex may be a factor, says DPM

 

PARLIAMENT | Putrajaya is planning to boost the country’s latex production soon, a move aimed at reducing revenue loss to import.

According to Deputy Prime Minister Ahmad Zahid Hamidi, Malaysia imports RM6 billion worth of latex annually despite it being a major rubber producer.

The high reliance on imported latex was also believed to be a factor behind Goodyear closing its tyre production plant in Shah Alam, he said.

“That is what (we suspect) to be one of the reasons.

“We should be producing latex, but because there has been no encouragement towards it, we had to depend on importing the product,” Zahid said when winding up on the Yang di-Pertuan Agong’s royal address at the Dewan Rakyat this afternoon.

The rural and regional development minister was responding to a question by Rosol Wahid (PN-Hulu Terengganu), who wanted to know if the global tyre production giant’s decision to leave Malaysia had to do with latex import.

Proposal to address smallholders’ issues

Zahid said there was no strong reason for Malaysia to depend on latex imports.

Hence, he said, the Rural and Regional Development Ministry together with the Plantation and Commodities Ministry have been working on a cabinet paper, where they will propose several approaches to address rubber smallholders issues, including latex production.

“Imagine if we could produce RM6 billion worth of latex locally. Surely this would also help to strengthen the value of the ringgit,” Zahid said.

Last week, it was reported that Goodyear was planning to close its plant in Shah Alam effective June 30.

In an internal memo which was purportedly leaked, Goodyear Tire & Rubber Company’s Asia Pacific president Nathaniel Madarang said the closure was part of the company’s “transformation programme.”

Madarang indicated approximately 550 positions in its Malaysian operations will be affected.

The plant in Shah Alam was opened in 1972. - Mkini