Covid-19 Impact on Rubber Product Sectors in Malaysia (December 2023)

29 pages. Year 2020 was the start of the Covid-19 pandemic. While demand for medical devices spiked during the outbreak, other rubber products sectors were adversely hit by the lock down restrictions and interruptions to supply chains. The pandemic has brought about significant change in global trade and business conducts. Thus, it is imperative to understand the impact on the rubber products industries and how it responded to the crisis. With successful vaccination rollout around the globe, economies have largely recovered to pre-pandemic level albeit at a slower pace. MRC conducted this study to evaluate the impact of Covid-19 on the rubber products industries and its supply chain in Malaysia as well as on the re-alignment of marketing strategies post-pandemic. In assisting for the recovery of rubber products manufacturers, MRC has also introduced Covid-19 Stimulus Package and Hiring Malaysian Workers Fund to support the industry. As Covid-19 pandemic has restricted travelling and movement of people domestically and globally, MRC took the initiative to create an online business matching namely MRC e-Globally Sourcing Mission (e-GSM) programme to support the local rubber industries' players. MRC also recognized the critical role that the midstream rubber sector plays in the industry ecosystem. In September 2021, Fund for Automation and Green Technology (FAGT), a grant to encourage automation and renewable source of energy and to reduce labour dependency, was opened to the midstream sector. The smaller scale operation SMEs were also provided a good access to the funding eligibility vis-a-vis the larger non-SME companies under the FAGT programme.