Since the end of 2019 until now, a lot of crisis happened around the world such as a series of massive bushfires across Australia, which affected the weather around the world, PM2.5 crisis occurred in many cities, and the COVID-19 pandemic, firstly found in Wuhan, the capital of Hubei, China. The World Health Organization (WHO) announced the COVID-19 outbreak as “a global pandemic”. Even though China can mostly control the pandemic, the COVID-19 outbreak outside China rise in more than 60 countries. As of 9 April 2020, the number of confirmed COVID-19 cases worldwide has exceeded more than 1.5 million cases, death 88,502 cases. There are 2,369 infected cases in Thailand, death 30 cases (informed by EOC-DDC Thailand as of 8 April 2020). The top 10 countries with the highest infected cases have the economic scale more than the global 2 out of 5. Therefore, the global is worried that if there are no appropriate measures to immediately control the COVID-19 pandemic, it will greatly affect daily life, society, and the global economy, including the business sector, tourism sector, and other industries.
The COVID-19 pandemic severely affects the global economy as well as global rubber demand. It affects the supply chain and the stagnant market. Besides, it also causes a delay in shipment and production plan and the lack of financial liquidity of entrepreneurs. The Association of Natural Rubber Producing Countries (ANRPC) expects that global natural rubber output in 2020 could jump 2.7% (14.18 million tons). Meanwhile, the global rubber demand in 2020 could climb 1.2% (13.82 million tons) because of the stop production of factories in China in the first two months of 2020, as a result of the COVID-19 pandemic.
The Thai Rubber Association is aware of the COVID-19 pandemic effects on the rubber industry. Besides, the rubber industry is also affected by the drought. Thailand relies on exports to China, Malaysia, USA, and Japan as 40% of total exports. So the market recession, as well as the stop operation of Malaysia border checkpoint from 18 March until the end of April 2020, affect Thailand's rubber industry. However, the Thai Rubber Association expedites coordinate with both Thailand and Malaysia’s government agencies and the private sector. Besides, TRA had discussed with the Consul General of Malaysia in Songkhla on resume the operation of the border checkpoint of both countries. Furthermore, the Rubber Authority of Thailand (RAOT) announced the contact channel for helping smallholders, Farmer Institution, entrepreneurs, and other people who are suffered from rubber problems caused by COVID-19 pandemic.
Lastly, I support healthcare workers, Public Health, and everyone related to the COVID-19 preventative actions. Please take care of yourself, and we will get through this crisis together.
Mr.Chaiyos Sincharoenkul
President
The Thai Rubber Association
The Effect of COVID-19 on Rubber Industry