Edaran Terhad

●25hb Oktober 2016●

Disusun oleh Perpustakaan, UPP

Inovasi mantaplcan industri getah 2 5 OCT 20)6

NDUSTRI getah tempatan asli (NR). m engu raJ lM JM ^^^pp frr^—terns perkasa dengan Jelasnya, modifikasi tersebut "* • " t O ^ Tpengenalan dua lagi tidak akan mengurangkan 'fs iteknologi baharu bagi kelebihan getah asli malah akan 'i"sJr:menghasilkan produk yang memperbaiki kelemahan sedia m '-«**■ Mr

mesra alam. ada.Kedua-dua teknologi tersebut “Produk yang terhasil adalah ^ ^

telah diperkenal sejak sekian daripada NR yang merupakan H i ® / ‘lama namun tidak mendapat suatu sumber yang boleh i , |!sambutan berikutan kurangnya diperbaharui dan sejajar dengan EKOPRENA sesuai digunakanpendedahan yang menyeluruh. trend global ke arah penggunaan untuk menghasilkan produk

Bagi memastikan kedua- sumber getah yang mesra alam. berasaskan getah.dua teknologi tersebut terus “Getah istimewa ini juga bolehditerima ramai terutama pemain- meningkatkan kepelbagaianpemain utama industri produk aplikasi NR berbanding produk 11berasaskan getah dalam dan luar getah konvensional dalam """■BEr**' hijau (carbon fo o t1 peratus.negara, Lembaga Getah Malaysia penghasilan tayar kenderaan, print) berbanding Bagi Pureprena, bahan(LGM) mengambil inisiatif hos getah dan pelbagai lagi,” ,MB j | getah sintetik. tersebut merupakan generasimenganjurkan Bengkel Getah katanya. H L ; n.|j| Proses penghasilan baharu daripada penulenanIstimewa Untuk Produk Hijau Beliau berkata demikian L ? y J Ekporenajuga dan pengurangan proteinBerasaskan Getah. ketika berucap merasmikan mehggunakan lebih (deproteinized) getah asli.

Merupakankerjasama bengkel tersebut di ibu B r V b a n y a k k a r b o n Dihasilkanmenerusirawatanbersama Felda Rubber negara baru-baru ini. dioksida dari udara hidrolisis susu getah asliIndustries Sdn. Bhd. (FRISB), Tambahnya, industri getah ® ‘ berbanding yang menggunakan enzim industribengkel tersebut lebih kepada negara memerlukan inovasi MUHAMMAD dibebaskan. yang mampu menukar kandunganmempromosi, mencipta baharu bagi mengembangkan LEO M ICH EAL Getah yang terhasil protien di dalam getah yang bolehkesedaran dan platform strategik potensi produk NR ke tahap TOYAD daripada Ekoprena dilarutkan oleh air.untuk mengukuhkan aplikasi seterusnya. ABDULLAH disasarkan pada Pureprena mengandungidua jenis produk berasaskan “Usaha ini amat penting ' industri pembuatan hampir 96 peratus hidrokarbongetah. kerana Malaysia kini perlu tayar kenderaan dan merupakan getah berbanding 93 peratus

Dua produk atau teknologi bersaing bersama negara- bahan utama yang perlu ada. mengikut gred SMR (Standardtersebut adalah Ekoprena negara jiran seperti Thailand, Keberadaan Ekoprena di dalam Malaysian Rubber).(Epoxidised Natural Rubber) dan Indonesia, Vietnam dan India tayar membolehkan produk Pengasingan komponenPureprena (Deprotenised Natural yang turut mengeluarkan produk tersebut mampu memberi kesan bukan getah daripadanyaRubber) untuk pembangunan berasaskan NR,” katanya. penjimatan bahan api, mampu membolehkan Pureprena sesuaiproduk getah yang mesra alam. Ekoprena merupakan NR yang mengekalkan prestasi tinggi ketika untuk penghasilan produk khas

Menurut Pengerusi LGM, terepoksi yang mampan, sumber digunakan pada permukaan yang berasaskan getah.Datuk Seri Dr. Muhammad boleh diperbaharui dan bukan berair dan berais (licin). Bagi mengembangkan lagiLeo Michael Toyad Abdullah, dihasilkan daripada sumber Terdapat dua gred Ekoprena penggunaan produk Ekoprena,kedua-duanya merupakan getah petroleum. dihasilkan dalam negara oleh LGM turut bekerjasamaistimewa dihasilkan menerusi Pengunaan produk getah FRISB iaitu Ekoprena 25 dan dengan Prasarana Bhd. untukproses modifikasi untuk Ekoprena daripada sumber Ekoprena 50 merujuk kepada menggunakan tayar yangmemperbaiki kandungan getah alam semula jadi juga dapat kandungan epoksi yang diperbuat daripadanya pada bas

milik syarikat tersebut.Man :.*■» Untuktujuanpengkomersialan

, y m r " J f L G M ju g a te la h m e le s e n k a n, ------ * W M f l H p p B ^ JM B 1 F R IS B u n tu k m e n g h a s ilk a n

* r ' I k e d u a -d u a E k o p re n a d an^ P ENGHASILAN h I K . j B L P u r e p r e n a d e n g a n k a p a s it i 1 2 ,0 0 0• Ekoprena dikilang. • * jBB»' - t a n s e t a h u n d a n m e n y a s a r k a n

^ p i ^ p e n g e lu a r a n s e h in g g a 3 0 0 . 0 0 0ta n s e ta h u n p a d a 2 0 2 0 .B B^^Bh ^BB j K ila n g E k o p r e n a p e r ta m ate la h d ib in a d i P a lo n g Je m p o l ,

’ N e g e r i S e m b ila n d a n le b ihseumpamanya

„ P B B akan dibina.1 H r Sehingga ke hari ini, industri

’ ’ 1 getah negara kekal sebagaia n ta r a in d u s tr i te r b e s a r y a n g

I Jp -5V~ menyumbang kepada ekonomi* . y Bt negara menerusi aktiviti eksport,

■ * t r * ' y f K ____ pekerjaan dan pendapatan.y*- Tahun lepas sahaja

3| J i f f l j ^ B k B B B jr mencatatkan industri tersebut, menyumbangkan sebanyak

BMR i k RM3 2 .7 7 bilion hasil eksportw _ ' X J iaitu sekitar 4.3 peratus nilail r: ' keseluruhan eksport negara.

2 5 OCT 2016

GETAH A 4 SEN24 Oktober 2016

Pasaran getah Malaysia ditu- tup tinggi semalam sejajar

dengan prestasi pasaran hada- pan getah serantau berikutan kelemahan ringgit berbanding dolar Amerika Syarikat, kata seorang peniaga.

Peniaga tersebut berkata, niaga hadapan getah di Bursa Kom oditi Tokyo (TOCOM) meningkat hari ini, disokong oleh pem ulihan d i Bursa Hadapan Shanghai dan harga m inyak yang tin gg i pada Jumaat minggu lalu.

Pada tengah hari, harga fizikal rasmi Lembaga Getah Malaysia bagi gred tayar SMR 20 meningkat 20 sen kepada RM6.105 sekilogram manakala susu getah pukal naik empat sen kepada RM5.00 sekilogram.

Harga penutup tidak ras­m i untuk gred tayar SMR 20 menambah sembilan sen ke­pada RM6.075 sekilogram manakala susu getah pukal me- nokok 4.5 sen kepada RM5.005 sekilogram. BERNAMA

RUBBERT h e s ta r

2 5 OCT 2015KUALA LUMPURThe Malaysian rubber market closed higher yesterday, in line with regional rubber futures markets on weaker ringgit versus the US dollar, a dealer said.

The dealer said the benchmark rub­ber futures at Tokyo Commodity Exchange rose yesterday, helped by recovery in Shanghai Futures Exchange and higher oil prices on last

Friday.At noon, the Malaysian Rubber

Board’s official physical price for tyre- grade SMR 20 rose 20 sen to 610.50 sen a kg while latex-in-bulk was four sen higher at 500 sen a kg.

The unofficial closing price for tyre- grade SMR 20 added nine sen to 607.50 sen a kg while latex-in-bulk was up 4.5 sen at 500.50 sen a kg. - Bernama

SMR PRICES FROM MRB IN SEN A KILO: OCT 24

Offer Price Noon sell Closing sellSen/Kg US Cents/Kg Sen/Kg US Cents/Kg

SMR CV 728.00 177.00 733.00 178.20SMR L 686.50 166.90 692.00 168.25SMR 5 622.50 151.35 619.50 150.60SMR GP 619.50 150.60SMR 10 612.50 148.90 609.50 148.20SMR 20 610.50 148.45 607.50 147.70

CENTRIFUGED LATEX - LOCAL PRICE (ISO 2004) IN MALAYSIAN SEN/KG(WET)Offer Price Noon sell Closing sellLatex in bulk 500.00 500.50Note: Effective from Jan 2, 2014, MRB will publish only thesellers' offer price.

FARMGATE LATEX PRICE:Latex CuplumpLow High Low High

(sen/kg) (sen/kg)Peninsular 510.00 620.00 212.00 269.00Sabah 490.00 490.00 195.00 230.00Sarawak

US$Low High

150.00 260.00

Sabah 205.00 24S.00Sarawak 236.00 446.00Source: Malaysian Rubber Board

AT A GLANCECOMMODITIES (OCT 24)

Tin (per tonne) US$20,050 +US$150Gold (per gramme) RM164.19 -RM0.46CPO Futures (per tonne) Nov RM2.821 +RM62US$ CPO Futures (per tonne) US$675.75 -

Rubber (per kg) SMR 20 610.50 sen +20 senLatex 500.00 sen +4 senOCT 24Nymex Oil Dec (per barrel) N/A

EXCHANGE RATE T h e S ta r 2 5 OCT Z0t8Bank Negara's best available quotations by commercial banksof Kuala Lumpur at 5pm on Oct 24, 2016UNITS OF FOREIGN CURRENCY PER UNIT OF MALAYSIANRINGGIT

Buying OD Selling ODUS dollar: 0.2394 0.2397Sterling: 0.1956 0.1959Singapore dollar: 0.3331 0.3336Yen 100: 24.8671 24.9089Euro; 0.2198 0.2201Chinese Renminbi:- 1.6210 1.6233Ringgit Malaysia per foreign currency

OPENING RATES BY MAYBANK ON OCT 24, 2016

SELLING BUYING BUYINGTT/OD TT OD

1 US Dollar.................... ........ 4.2550 4.1180 4.10801 Australian Dollar........ ........3.2440 3.1270 3.11101 Brunei Dollar.............. ........ 3.0600 2.9490 2.94101 Canadian Dollar...................3.1910 3.0820 3.07001 Euro............................. ........4.6340 4.4750 4.45501 New Zealand Dollar.... ........3.0670 2.9320 2.91601 Papua N Guinea Kina ...........1.4410 1.2060 1.19001 Singapore Dollar.................3.0595 2.9490 2.94101 Sterling Pound.....................5.1900 5.0370 5.01701 Swiss Franc................. ........4.2780 4.1450 4.1300100 UAE Dirham................. 117.4600 110.5300 110.3300100 Bangladesh Taka..... ........5.5100 5.1680 : 4.9680100 Danish Krone.................64.0200 58.4600 58.2600100 Hongkong Dollar..... ......55.6100 52.3300 52.1300100 Indian Rupee...................6.4790 6.0300 5.8300100 Indonesian Rupiah............0.0339 0.0303 0.0253100 Japanese Yen...................4.1090 3.9520 3.9420100 Norwegian Krone.... ......53.01 QO 48.3800 48.1800100 Pakistan Rupee....... ........4.1400 3.8500 3.6500100 Philippine Peso........ ........8.9600 8.3800 8.1800100 Qatar Riyal.............. .... 117.8400 112.0900 111.8900100 Saudi Riyal.............. .... 114.5100 108.7100 108.5100100 South Africa Rand... ......31.4200 28.8300 28.6300100 Sri Lanka Rupee...... ........2.9800 2.7100 2.5100100 Swedish Krona........ ......49.3200 44.5800 44.3800100 Thai Baht................. ......12.9600 10.9100 10.5100

The star 2 5 OCT 2016

Economist: Govt needs todeal with bloated civil serviceRosario says there is need to cut down further on emoluments

KUALA LUMPUR: The government has to eventually deal with the issue o f the bloated civil service to avoid repercussions later on, said Deutsche Bank’s economist Diana Rose del Rosario.

“Operating expenditure accounts for at least 80% o f total expenditure (in the budget) and a big part o f it comes from emoluments which account for 26% o f total operating expenditure,” Rosario said at the Budgetary Priorities in a Challenging Economic Environment forum hereyesterday.

"The government has actually already tightened spending in this area: it used to grow around 10% year on year between 2010 and 2014. Growth here has since fallen to 5% year on year in 2016 to 2017.

"Success has been there in terms o f tighten­ing this area but there remains a great need to (further) cut down on emoluments,” she added.

Rosario said that the bloated size o f the civil service in the country is much higher than the average in the Asean region.

“The size o f the Malaysian civil service is that there are five civil servants for every 100 people. This is a lot higher than the average in the civil service of the rest o f the region with an (average) o f around two for every 100 people,” she said.

“There is an urgent need for this govern­ment if it continues in the path o f fiscal con­solidation to strive for a lean and efficient public service,” she added.

Rosario also said that there may be some “upward pressure” from debt service pay­

Rosario: The size of the Malaysian civil ser­vice is that there are five civil servants for every 100 people.'

ments under the emoluments section o f the expenditure as interest rates are poised to rise due to the stance taken by the US Federal Reserve.

Meanwhile, she also said that the retire­ment pension charges that are poised to rise by 15% next year should be looked at from a wider perspective.

“Although we are not worried that it is driv­en by a surge in retirees, but if you look at the pace o f growth in the younger population the labour force as projected by the United Nations - the younger ones are expected to decelerate at a sustained deceleration in the next five years,” she said.

‘This does not bode well for tax collection or domestic demand. There is a need then to boost wages through a boost in productivity to facilitate domestic demand and tax collec­tions,” Rosario said.

At the same event, secretary-general o f the Treasury Tan Sri Mohd Irwan Serigar said contingent liabilities by the government are backed by sound assets and companies.

“There may be some pressure by contin­gent liabilities by the government but those entities that the government provides guar­antees for are all strong and credible ones which can pay o ff their dues.

For example, Khazanah Nasional Bhd, Prasarana and MRTcorp (have borrowed) for their big capital items,” he said.

“Although there is pressure but there is no worry in terms o f default,” Irwan said.

Commenting also on the issue on jobless graduates and productivity, Irwan said that universities in Malaysia should supply man­power for what is needed for the industries in Malaysia.

“Some o f the industries are too reliant on foreign workers.

“We can’t change this overnight and we need more technology here. We should not have universities which do not provide for certain industries that are in demand,” he said.

Watch the videothestartv.com

NST

2 5 OCT 2016‘Focus remains on fiscal consolidation’

Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullahsays the mentality o f 1.6 m illion civ il servants must change. Pic by Aizuddin Saad

ACKNOWLEDGEMENT:Rating agencies happy with govt's

.plan to reduce fiscal deficit to GDP from 3.1pc this year to 3pc next year

RUPA DAMODARANKUALA LUMPUR

rupabanerji@mediaprima.com.my

THE government remains fo­cused on the fiscal consoli­dation path and international

sovereign rating, agencies have al­ready acknowledged the decision, said Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah.

The rating agencies were happy with the decision to reduce the fiscal deficit to gross domestic, product (GDP) from 3.1 per cent this year to three per cent next year.

“The government is firm in its de­cision to go ‘down’ (on the fiscal path),” he said in a post-2017 Budget dialogue session organised by the Malaysian Economic Association yesterday:

The prudent spending, Mohd Ir­wan said, as reflected by the 2017 Budget, tabled by Finance Minister Datuk Seri N a jib Razak last Friday, showed the govern­ment is moving away from a petroleum- based revenue.

The Treasury, he said, had been whip­ping ministries to em­bark on fiscal disci­pline, pushing them to “cut spending on those which can be sa ved ” to reduce wastage.

“The mentality o f 1.6 million civil servants must also change... we are no more in the 1960s and 1970s and they need do things, more efficiently now.

“When asked to cut expenses, they

cut the essential ones and not those which they spend lavishly on. That has got to change,” Mohd Irwan added.

Official cars, he added, need not be changed six years after purchase

as they are still road­worthy.

On the econom ic report, Mohd Irwan highlighted that the shrinking current ac­count balance o f pay­ment was worrying. .

“The GDP for next year will see services as the driver, apart from construction and manufacturing sectors.

“Agriculture has al­so turned around into positive ter­ritory.”

The medium-term framework fis­cal policy, he said, is intact for the government to get closer to a near­

budget balance by 2020.He described the formulation o f

the budget as the toughest since he took over more than a decade ago.

The revenue related to oil having shrunk by over RM30 billion was offset by the introduction o f the Goods and Services Tax (GST), but with over 100 exemptions, the gov­ernment has also been losing RM5 billion.

“Effectively, the GST was only three per cent and not six per cent.”

During the dialogue session, he was asked about the risks o f con­tingent liabilities in terms o f loans to the civil service and agencies., “When, you break down the con­tingent liabilities, the government guarantees are -all entities that are strong and credible and can pay o ff their dues like Khazanah Nasional, Prasarana and MRT, which we fi­nance for their big capital items. There is no worry in terms o f de­fault.”

Sun

2 5 OCT 2016

Fiscal deficit of 2.6%to GDP possible> This is based on forecast that oil prices will average US$50 a barrel in 2017: Deutsche Bank economistBY EVA YEONGsunbiz@thesundaily.com

KUALA LUMPUR: The government can reduce the fiscal deficit to as low as 2.6% o f gross domestic product (G D P) i f oil prices average US$50 (RM 209) per barrel, said Deutsche Bank, Singapore, economist Diana Rose del Rosario.

“Our house view is at least US$50 per barrel on average. I f we are right in 2017, we see that the Finance Ministry has room to meet a lower fiscal deficit o f as low as 2.6% o f GDP," she said at a dialogue on Budget 2017 organised by the Malaysian Economic Association yesterday.

She said the 3% fiscal deficit projection announced under Budget 2017 is on the conservative side and made under the assumption o f an average oil price o f US$45 per barrel.

Rosario said some o f the downside risks that may affect Malaysia are protracted weakness in commodity

prices, global trade activity, slowdown in China and European Union uncertainty arising from Brexit.

Rosario said in order to continue with its fiscal consolidation, Malaysia must strive for a lean and efficient public service.

“Emoluments account for 26% o f total opex and government already tightened spending in this area It used to grow 10% year on year between 2010 and 2014. In a sense growth has fallen 50% to 5% year on year 2016 to 2017. Success has been there in terms o f tightening in this area but there remains great room to cut down emoluments,” she said.

Rosario said Malaysia has a high number o f civil servants compared with the rest o f Asean, with 5.x civil servants for every 100 population.

Meanwhile, she noted, debt service payments and pension charges account for almost 20% o f total opex. There is upward pressure on debt service payments given that interest rates are set to rise while pension charges are set to increase 15% this year.

While Malaysia’s aging pace is set to stabilise over the next five years, the working force is heading towards

sustained deceleration over the next five years.

“This does not bode well for tax collections and domestic demand. There is a need to ramp up real wages, ideally stemming from a boost in productivity, to offset this,” she said, adding that there is room for further subsidy rationalisation.

However, she is sceptical about the government’s projection for corporate income tax collections, which is set to increase by RM 6 billion next year.

“W e don’t see any force to drive C IT (corporate income tax) collections given that C IT rate is the same... but even with lower C IT collections the government can still achieve a fiscal deficit o f about 2.8% i f the oil price is higher (than US$45 Per barrel).”

Meanwhile, Secretary General o f the Treasury Tan Sri Dr Mohd Irwan Serigar Abdullah said while contingent liabilities are a pressure, there is no danger in terms o f default.

He was commenting on claims that Non Financial Public Corporations spending deficit is a “time bomb”, growing from RM 10.6 billion in 2013 to RM 52.3 billion in 2014 and RM 56.9 billion in 2015.

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RUBBER-TOCOM bounces back from 10-day low on firmer Shanghai

285 words24 October 201617:17Reuters NewsLBAEnglishCopyright 2016 Thomson Reuters. All Rights Reserved.TOKYO, Oct 24 (Reuters) - Benchmark Tokyo rubber futures climbed on Monday, snapping a 4-day losingstreak and bouncing back from a 10-day low hit last week, as higher Shanghai futures promptedshort-covering.

The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery <0#2JRU:> finished 4.7 yen,or 2.7 percent, higher at 178.6 yen ($1.72) per kg.

"The TOCOM was just tracking Shanghai move," a Tokyo-based dealer said.

"I think the rebound will be short-lived as it came as some investors in China who have oversold on Fridayunwound their positions," he said.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 290 yuan tofinish at 13,905 yuan ($2,053.67) per tonne, rebounding from a 3-week low touched last Friday.

The market paid little attention to China's trade data that showed a 36.5 percent drop in import of naturalrubber in September from a year earlier.

A softer yen against the U.S. dollar also lent some support to the TOCOM futures, dealers said.

The dollar added 0.2 percent to 103.97 yen, buoyed by expectations that the U.S. Federal Reserve wouldraise interest rates this year. A weaker yen makes yen-denominated assets more affordable when purchasedin other currencies.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 145.8U.S. cents per kg, up 0.4 cent.

($1 = 103.8700 yen) ($1 = 6.7708 Chinese yuan) (Reporting by Yuka Obayashi; Editing by Biju Dwarakanath)

Released: 2016-10-24T10:17:48.000ZDocument LBA0000020161024ecao00hwt

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Rubber growers bank on dairy farming to milk better revenue

481 words25 October 2016New Indian ExpressNIEXPREnglish(C)2016 The New Indian Express GroupRubber growers bank on dairy farming to milk better revenue

K C ARUN

Thrissur Rubber farmers, hit by the plunge in the price of natural rubber, are increasingly turning to dairyfarming. The trend is seen among the rubber farmers in the Kottayam, Pathanamthitta, Idukki, Wayanad andKannur districts. “They are starting cattle farming to get sustainable income. The fluctuation in the price ofrubber is heavily affecting the rubber farmers,” said Dr T P Sethumadhavan, director of entrepreneurship inKerala Veterinary and Animal Sciences University, Mannuthy centre. “The number of dairies is increasing,” headded. In Kerala, 12 lakh farmers are cultivating rubber and majority of them are small-scale farmers.Harichandran Nair, a rubber farmer from Cherumala, Kottayam, said that he had an average income of `2,000per day from rubber, when the price was ranged near `200 per kg. “Now I am getting nearly `1,000 per day,”he added. He has 3.5-acre rubber plantation. He tried his luck in ‘slaughter tapping’ after taking rubberplantations on lease. But he suffered losses again. He runs a dairy farm with 20 cows. From these cows, heis getting an average revenue of `3,000 per day. The feeding expense of the cows is around `750-800 perday. He is selling milk to the local people for `40 per litre as well as to Milma which gives `35 per litre.Besides, cow dung is used as manure for rubber. After eight years of continuous surge in price of rubber, inJanuary 2016, the price dipped into `94 per kg. “The life of rubber farmers is stuck in the crisis. Now thefarmers are starting to rear goat and cattle due to decrease in revenue from the rubber farming,” said DoctorJose E Philip,Veterinary poly clinic in Kanjirappally. It is easy to start a small dairy and this attracts the rubberfarmers to cattle rearing. When the price of the rubber increases they can sell the cattle. “It is a tough job torear cattle. The farmer’s will not get much time to do other business. Thus, the farmers will sell cattle off whenthe rubber price increases,” Dr Jose said. “The farmers are growing grass to feed the cattle. This helps thefarmers to reduce the cost of cattle rearing. The price of fodder is very high,” said Jose. Dr Sethumadavansaid that the price of the fodder has been increased 250 times in last few years. The farmers are taking landon lease and cultivate the grass to feed the cattle. According to Biju, another veterinary doctor fromKanjirappally, the experience of 1995-96 is helping the rubber farmers to balance their life. He explained thatthis trend is a cycle and it was shown in 1995-96 when the rubber price fell.

Document NIEXPR0020161025ecap00001

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AGRICULTUREVietnam’s rubber industry encounters ‘white crisis’

510 words24 October 2016Vietnam News SummaryVENEWSEnglishCopyright 2016. Vian Company Limited.A sign of the times: The rubber price has fallen to $1,500 per ton from the highest peak of $4,000-5,000 perton gained in 2011.

Highway No 14, which connects Binh Phuoc district, was once covered by the green color of rubber trees.Rubber was compared to ‘white gold’ which brought prosperity to locals.

However, the situation is different now. Those who travel across Binh Phuoc, Tay Ninh, Binh Duong andDong Nai may see bare and ragged rubber forests, and piles of felled rubber trees lying on the roads.

That is the consequence of the rubber latex price plunge, from $4,000-5,000 per ton in 2011 to $1,500 per tonnow. There is no sign of the heyday returning.

While the production cost is $2,000-2,200 per ton, the selling price is not higher than $1,500. This is whymany farmers have felled rubber trees and shifted to grow other crops.

According to the Ministry of Agriculture and Rural Development (MARD), in 2015 alone, about 6,000 hectaresof rubber were chopped down.

While the production cost is $2,000-2,200 per ton, the selling price is not higher than $1,500. This is whymany farmers have felled rubber trees and shifted to grow other crops.

Binh Phuoc and Tay Ninh, the localities, which pioneered the ‘rubber growing movement’, have alsopioneered the ‘rubber devastation movement’.

However, though many rubber fields have been cleared, the total rubber growing area in Vietnam is still largerthan the area planned by the government (1 million hectares vs 800,000).

With the scale, according to IRSG (International Rubber Study Group) and Economist Intelligence Unit,Vietnam now ranks third in the world in terms of rubber production.

The country is also facing the oversupply with the surplus of 147,000 tons in 2015.

In 2016, though Vietnam tried to control the output to avoid overproduction, it still has 3 million tons of rubberin stock, which is equal to 25 percent of total annual output.

Vietnam cannot cut down the output sharply to gather strength on clearing the inventory volume. Stopping theexploitation means letting rubber trees die.

Large-scale companies, especially the subsidiaries of the Vietnam Rubber Group (VRG) such as Dong Phu(DPR), Tay Ninh (TRC) and Phuoc Hoa (PHR) which can enjoy preferences in land access, have madeheavy investments to develop their rubber fields.

DPR, for example, had poured VND800 billion by June 2016, into projects growing 6,300 hectares of rubberin Cambodia.

DPR’s investment rate per hectare of rubber is equal to 60-70 percent of the average investment rate. This,plus the cost control measures, help DPR have production costs lower than the selling price.

Page 2 of 2 © 2016 Factiva, Inc. All rights reserved.

However, it is still more difficult to make profits from growing rubber. DPR’s financial report showed that it wasnot rubber trees but liquidation and financial investment activities which had brought its major income. (VietNam Net – October 23)

Document VENEWS0020161024ecao00010

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Asian Rubber Futures End Higher; Yen Helps Tocom Rubber

By Lucy Craymer212 words24 October 201618:59Dow Jones Institutional NewsDJDNEnglishCopyright © 2016, Dow Jones & Company, Inc.

Benchmark Tokyo rubber future prices ended sharply higher on Monday, lifted by a weakening yen.

The recovery in oil prices also resulted in higher shares across Asian markets, lifting the overall mood of themarket, traders said.

The Tokyo Commodity Exchange earlier said it has plans to introduce a Technically Specified Rubber futurescontract in the near term.

"Overall, demand in rubber market has been shifting to TSR from RSS [ribbed smoke sheets]--Tocom's listedrubber--and it has caused the decline in rubber trading since earlier in the century. We are planning to listTSR in near future to capture current market demand," said Keiko Koyama, a spokeswoman for the TokyoCommodity Exchange.

Asian Rubber FuturesOct 24 Change from previous close

Tocom Mar RSS3 Y178.6/Kg Up Y4.7/KgShanghai Jan SCR5 CNY13,700 /Ton Up CNY 235/TonSicom Nov RSS3 US 166.0 cents/Kg Up US 2.7 cents/KgSicom Nov TSR20 US 145.4 cents/Kg Up US 1.7 cents/Kg

USS CLOSED

Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer

(END) Dow Jones Newswires

October 24, 2016 06:59 ET (10:59 GMT)

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Tocom Plans to Introduce TSR Rubber Contract in Near Term

By Lucy Craymer153 words24 October 201615:24Dow Jones Institutional NewsDJDNEnglishCopyright © 2016, Dow Jones & Company, Inc.

The Tokyo Commodity Exchange has plans to introduce a Technically Specified Rubber futures contract inthe "near term," according to a spokeswoman for the exchange.

"Overall, demand in rubber market has been shifting to TSR from RSS [ribbed smoke sheets] --Tocom's listedrubber-- and it has caused the decline in rubber trading since earlier in the century. We are planning to listTSR in near future to capture current market demand," said Keiko Koyama, a spokeswoman for the TokyoCommodity Exchange.

Technically Specified Rubber is used in the manufacture of tires. The TSR contract, which trades on theSingapore Exchange Ltd., has become increasingly popular with volumes nearly doubling between 2014 and2015.

Write to Lucy Craymer at lucy.craymer@wsj.com, @lucy_craymer

(END) Dow Jones Newswires

October 24, 2016 03:24 ET (07:24 GMT)

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