Malaysian Rubber Industry Must Set New ESG Benchmarks – Chan

KUALA LUMPUR, Aug 7 (Bernama) -- Malaysia’s rubber industry must not only meet global standards but set new benchmarks to remain competitive in high-value markets, said Plantation and Commodities Deputy Minister Datuk Chan Foong Hin.

He stressed that alignment with environmental, social and governance (ESG) principles is non-negotiable.

“The future of rubber holds vast potential, from medical innovation to sustainable mobility. But this can only be realised through firm ESG leadership and systemic resilience.

“Sustainability is no longer a competitive edge, it is now a prerequisite for market access. Stakeholders—investors, buyers, consumers, and regulators—demand genuine ESG integration across the supply chain,” he said when officiating the Malaysian Rubber Industry ESG Conference (MREC 2025) today.

Chan said Malaysia has been categorised as a standard-risk jurisdiction under the European Union Deforestation Regulation (EUDR).

“However, that label does not fully reflect our advanced regulatory frameworks or the realities on the ground.

“The classification has sparked debate, and rightly so. But rather than merely contesting it, Malaysia is demonstrating compliance through action,” he said.

He added that the country is implementing a comprehensive sustainability strategy, underpinned by legality verification, traceability, zero-deforestation commitments, labour rights protection, and environmental stewardship.

“These pillars form the foundation of the Malaysian Sustainable Natural Rubber (MSNR) framework, launched in January 2025 by the Malaysian Rubber Board,” he said.

Held under the theme “Creating Opportunities Amid Sustainability Challenges,” MREC 2025 comes at a critical juncture as Malaysia ramps up efforts to enhance traceability, regulatory compliance and sustainable production across its rubber value chain.

These efforts are particularly timely amid growing global scrutiny, including the enforcement of the EUDR and other ESG-related trade requirements.

The conference aligns with the Ministry of Plantation and Commodities’ broader strategy to position Malaysia as a trusted global supplier of sustainably produced commodities.

-- BERNAMA