Higher monthly output driven by smallholders despite lower year-on-year production, while rubber prices strengthen and inventories decline.
Malaysia’s natural rubber production increased by 9.1% month-on-month to 20,198 tonnes in May 2026, up from 18,515 tonnes in April, according to the Department of Statistics Malaysia (DOSM). The increase reflects stronger monthly output, although production remained 16.7% lower than May 2025, when output reached 24,256 tonnes.
Smallholders continued to dominate the country’s rubber sectorRubberProduction
RubberMarket, contributing 89.4% of total production, while estates accounted for the remaining 10.6%. The figures highlight the important role of independent rubber growers in sustaining Malaysia’s natural rubber supply.
Malaysia’s natural rubber stocks declined by 6.2% to 122,658 tonnes in May from 130,698 tonnes in April. Rubber processors held the majority of inventories at 77.8%, followed by rubber consumers with 22.0%, while estates accounted for just 0.2% of total stocks.
Exports of natural rubber fell 23.1% month-on-month to 28,741 tonnes in May. China remained the largest export destination, accounting for 42.7% of shipments, followed by Germany (14.6%), the United States (11.2%), Türkiye (4.3%), and India (3.8%). Rubber gloves continued to be Malaysia’s leading rubber-based export product by value, alongside tyres, tubes, and rubber thread.
Rubber prices strengthened during the month, supported by improving global market conditions. The average price of concentrated latex increased 1.1%, while international benchmark prices for Technically Specified Rubber (TSR 20) and the Singapore/Malaysia rubber benchmark also recorded gains, reflecting healthier market sentiment.
The latest figures indicate a gradual recovery in monthly production despite year-on-year challenges. With stronger commodity prices, resilient demand for rubber products, and continued contributions from smallholders, Malaysia’s natural rubber sector remains well positioned to support the global tyre, automotive, and industrial rubber industries.