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Malaysian Rubber Products Industry. Malaysian Rubber Products Industry
Malaysian Rubber Products Industry. Malaysian Rubber Products Industry
affected by Coronavirus disease (COVID-19) outbreak and the severity of the impact
of Covid-19 outbreak on the business is unprecedented including Malaysian rubber
products industry. Therefore, Malaysian rubber products industry has been
challenging and suffering various of economics problems, such as reduced demand
and supply. Other than that, Malaysian rubber products industry is in perfect
competition because its market structure had an infinitely large number of buyers
and sellers who operate freely and they sell homogenous rubber products at a
uniform price and they not bonded with the market or other industry.
Eventhough the price of natural rubber declined from RM5496.80 per tonne
in February to RM 4701.30 per tonne in May, after the enforcement of government
policies which is the implementation of MCO extremely affects the quantity
demanded and quantity supplied of natural rubber for abroad from February to May
2020. As the quantity demanded of natural rubber from abroad in February is
135,494 tonnes was declined to 49,658 tonnes only, a sharp decreased 85,836
tonnes or -63.35% on natural rubber. Due to MCO, Malaysian rubber products
industry was not permit to employment to work and proceed to rubber processing
activities in the factories.
In addition, the demand curve was intersect the supply curve at 74,460
tonnes natural rubber at a price of RM5469.08 per tonnes natural rubber. The
intersection point of demand curve and supply curve is called equilibrium point while
the quantity 74,460 tonnes natural rubber is equlibrium quantity and RM5469.08 per
tonnes natural rubber is equilibrium price for natural rubber. At the price
RM5903.80 per tonnes natural rubber, the quantity supplied of natural rubber to
abroad was 119,539 tonnes natural rubber was higher than the quantity demanded
of natural rubber from abroad was 57,598 tonnes natural rubber,hence Malaysian
rubber product industry exists a surplus on natural rubber with 61,941 tonnes
natural rubber. At the price RM5386.80 per tonnes natural rubber, the quantity
demanded of natural rubber from abroad was 107,947 tonnes natural rubber higher
than the quantity supplied of natural rubber to abroad was 42,659 tonnes natural
rubber, hence Malaysian rubber product industry exists a shortage on natural rubber
with 65,288 tonnes natural rubber.