The Mon State government wants to boost local rubber manufacturing and capitalize on the global demand.
During an on August 1 meeting with rubber entrepreneurs at the state government offices in Mawlamyine, Chief Minister Aye Zan proposed government-subsidies for large-scale rubber factories.
If the state invests in rubber factories, the industry could scale up the volume of rubber produced, which would in turn fuel a windfall for the state coffers, he said.
“Mon State produces 100,000 tonnes of rubber per year…The total value would be US$30 million for 100,000 tonnes. This is equivalent to 390 billion in Myanmar kyats.
We could build many schools, hospitals and roads [with that]. The yearly budget of the Mon State is only K68 billion,” the chief minister said.
He offered to split the costs of the factory investment; if the business owners put up K80 million, the government will provide K120 million.
“We will try to build up the rubber market in Mawlamyine. We have already negotiated with factories that can offer value-added service,” U Aye Zan said.
The entrepreneurs indicated support for the plan.
“If a high-quality rubber factories can be built in each township, more high-quality rubber can be produced. Small-scale planters can’t make much investment [at the moment]. The rubber sheets that are produced today have to be sold within the same day in order for them to earn a living,” said U Thet Oo, secretary of Kyaikmaraw township’s Rubber Planters and Manufacturers Association.