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This report uses the Global Value Chain (GVC) framework to examine the Philippines’ position in the global rubber industry and identify opportunities for upgrading for the sector. While the nation is situated in the belt of rubber-producing countries close to the Equator and often ranks among the top 10 exporters of raw or semi-processed rubber, the domestic sector consistently generates the lowest unit value for its exports of any country in the top 15. Furthermore, the industry appears to have undergone economic downgrading in recent years, with businesses that used to process raw rubber into crumb rubber instead sending unprocessed natural rubber—cup lumps—to plants in Malaysia. As the Philippines investigates ways to increase its output of higher-value rubber goods, especially in growth sectors such as health products, the challenges associated with production and initial processing will need to be first addressed to enhance the country’s competitive position.
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